Thread: FBS Holdings: US dollar is likely to advance versus yen (Barclays Capital)

The greenback rose today to the 7-week maximum versus Japanese yen at 83.89 overcoming the major resistance at 83.62. US currency was helped by the short-covering in the dollar and fresh yen selling from Japanese margin traders.

If the pair USD/JPY climbs above 84 yen, the market sentiment will likely change and investors will turn to buying dollars.

Analysts at Barclays Capital note that the possibility of the pair’s growth increases as US yields are rebounding. According to the specialists, if the greenback closes today above the daily Ichimoku Cloud and resistance in the 83.70/84.00 area, it will be poised to rise to 84.75 and to the intervention peak around 86.00.

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There are various financial instruments that are traded through the forex exchange market including spot, forward transactions, futures, swaps and options. Investment in any of these financial instruments will enable investors to transform a modest portfolio into a moderate one. Among these, the spot market has the largest share in terms of trading volume among all transactions of forex financial instruments.