30 Apr 2014
USD/JPY hopes to get clues from BOJ report
FXStreet (Moscow) - USD/JPY rebounded from Asian lows of 102.32 and settled at 102.40
BOJ will have the second chance
USD/JPY finished Tuesday mostly unchanged despite strong anti-risk sentiments caused by latest geopolitical issues. Strong JPY clashed with strong USD and the later seemed to win, though only marginally. The pair drifted lower early in Asia today on the back of positive Japanese macro economic data. Traders were positioning for Bank of Japan monetary policy decision, which turn out to be a non-event, as usual. Now we are waiting for Outlook report that will include latest GDP and inflation forecasts. This is a risk event that might trigger a good deal of volatility on the market, especially if the central bank lowers the GDP forecasts. More dovish BOJ will unleash the bearish JPY potential and push USD/JPY to the upper side of its recent channel. From the technical point of view, the pair came close to an important support of 102.39 that coincides with 55-day MA, a clear break below is needed to open the way to 102.30/20 area where fresh demand is clustered. A failure at the above mentioned support might reverse the short-term USD/JPY dynamics. The firs bullish target is 102.77 (Tuesday’s high)
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.63, with support below at 102.47, 102.31 and 102.15 with resistance above at 102.80, 102.96, and 103.12. Hourly Moving Averages are mixed, with the 200SMA at 102.44 and the daily 20EMA at 102.42. Hourly RSI is bearish at 49.
BOJ will have the second chance
USD/JPY finished Tuesday mostly unchanged despite strong anti-risk sentiments caused by latest geopolitical issues. Strong JPY clashed with strong USD and the later seemed to win, though only marginally. The pair drifted lower early in Asia today on the back of positive Japanese macro economic data. Traders were positioning for Bank of Japan monetary policy decision, which turn out to be a non-event, as usual. Now we are waiting for Outlook report that will include latest GDP and inflation forecasts. This is a risk event that might trigger a good deal of volatility on the market, especially if the central bank lowers the GDP forecasts. More dovish BOJ will unleash the bearish JPY potential and push USD/JPY to the upper side of its recent channel. From the technical point of view, the pair came close to an important support of 102.39 that coincides with 55-day MA, a clear break below is needed to open the way to 102.30/20 area where fresh demand is clustered. A failure at the above mentioned support might reverse the short-term USD/JPY dynamics. The firs bullish target is 102.77 (Tuesday’s high)
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.63, with support below at 102.47, 102.31 and 102.15 with resistance above at 102.80, 102.96, and 103.12. Hourly Moving Averages are mixed, with the 200SMA at 102.44 and the daily 20EMA at 102.42. Hourly RSI is bearish at 49.