USDJPY moves up ahead of Abe and Obama meeting, February 22 2013


The greenback moves slightly higher against the Japanese yen in USDJPY during today’s session before Prime Minister Shinzo Abe’s meeting with President Obama later this day.

In Asian trading today, USDJPY increased with 0.14% to 93.25. The pair was supposed to meet support at 92.21, bottom from February 15 and resistance at 94.45, top level from February 11 and a two-and-a-half year high.

The meeting between Abe and Obama aims to support the relationships between the two countries and it is widely supposed that the U.S. president would gently incite his Japanese counterpart about joining a trans-Asian trade partnership. If this happens, USDJPY is expected to go higher.

The yen has lost nearly 10% against the U.S. dollar since mid-December when Abe was elected prime minister.

At the same time, the dollar gained strength against the yen after a report released earlier today by Societe Generale that indicated that the yen is among three currencies that could be influenced most by a rising dollar and higher U.S. bond yields. The other two currencies highlighted in the report were the Australian dollar and the Mexican peso.

Besides, currency pair EURJPY increased 0.28% to 123.16 while AUDJPY soared 0.79% to 96.19. GBPJPY rose 0.19% at 142.30.

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