Forex: USD/JPY falls to 1-week low

FXstreet.com (Córdoba) - The US dollar extended losses versus the yen during the NY session after the latest string of mixed US data gave sellers an excuse to sell the greenback.

USD/JPY accelerated lower on the break of the 96.00 support area and slid to a 1-week low of 95.28 before the 200-hour SMA offered support. At time of writing, USD/JPY is trading around 95.50, down 0.6% on the day.

In terms of technical levels, on the downside next supports are seen at 95.28 (200-hour SMA) and 95.00 (psychological level), while resistances could be found at 96.25(intraday high) and 95.60 (Mar 15 high).

Mar 15, 2013

Forex Flash: US growth approaching sustainable amidst easing – UBS

According to Research Analysts Gareth Berry and Geoffrey Yu at UBS, “Where the Fed or the US leads, the rest of the world will follow and if 2009-12 marked the 'new normal', perhaps 2013 may mark the beginning of the return to 'the old normal'. With the (private sector) deleveraging process close to completion (and many will argue it is already complete), finally some form of sustainable growth is beginning to emerge in the US, and the Fed can afford to entertain pulling back on stimulus provision.”

S&P rise to 1600 requisite on steadfast US growth, USD wanes across the board

In light of the recent run-up in US equities, it bears the question if such an influx in returns is stable or additional growth is possible. Indeed, U.S. economic growth will have to accelerate to “ridiculously strong levels” to justify any advance for the Standard & Poor’s 500 Index (SPX) above the 1,600 level, wrote Jim O’Neill, chairman of Goldman Sachs Asset Management.