USD/JPY struggling ahead of wall of offers

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USD/JPY surged higher after jobless claims but the move stopped dead at 99.41 as the stock market fails to offer any support for the rally in risk assets.

The reason is a wall of offers beginning at Monday’s high of 0.9947.

USDJPY May 9 2013

It doesn’t get any better from there with exporters selling at 99.50; more sales (said to be strong) at 99.55/60. There are some buy stops mixed (especially above 99.70) in but it will be a chore to get above 99.60, especially with stocks sliding.

Better to look for shorts here.

Author: Adam Button

Adam Button is the managing editor of ForexLiveâ„¢. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.


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Adam Button

One Comment

  1. Adam, Looks like you are finally turning bearish on USDJPY. Theory that Japanese institutions are selling JPY and buying higher yielding bonds everywhere is hitting the wall. They are instead putting money in Nikkei.


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