Dollar edges up from 1-month low vs yen

Against the yen, the dollar was seen likely to be supported at the psychologically key 100 yen level, although a breach of that level could open the way for the dollar to test support at 99, a low marked in the aftermath of the UK’s “Brexit” vote.

The dollar will probably trade in a 100 yen to 102 yen range in the near term, said Stephen Innes, a senior trader for FX broker OANDA in Singapore.

Some traders seem to be looking to take short positions in the dollar if it rises towards 102 yen, Innes said, adding that dollar-selling could also gain steam if the greenback were to fall below 100 yen.

“If we break below the figure it’s just going to be like a free-for-all I would imagine down to the post-Brexit level,” Innes said.

 

REUTERS

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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