19 Jan 2015
USD/JPY: recovery loses momentum
FXStreet (Córdoba) - USD/JPY has managed to trim early losses after briefly dipping below the 117.00 level, although the recovery lacked momentum, confining the pair to a phase of consolidation around opening levels.
The yen weakened following Japan's industrial production data, allowing USD/JPY to bounce off the 116.90 area. However, with the recovery capped by the 117.40 zone, USD/JPY has spent last sessions in a slim range, unable to set a fresh direction. At time of writing, the pair is trading at the 117.30 zone, still 0.13% below its opening price.
In the absence of economic news or event and with the calendar empty for the rest of the day, USD/JPY is likely to extend its consolidative phase, with the 117.75 area, Jan 16 high, as immediate resistance to watch.
BoJ decision this week
The Bank of Japan meets on Wednesday and according to the BBH analyst team, it is likely reduce its growth and inflation forecasts. “Yet cutting the inflation forecast will fuel expectations for even more monetary efforts unless there is a clear signal from BOJ Governor Kuroda”.
The yen weakened following Japan's industrial production data, allowing USD/JPY to bounce off the 116.90 area. However, with the recovery capped by the 117.40 zone, USD/JPY has spent last sessions in a slim range, unable to set a fresh direction. At time of writing, the pair is trading at the 117.30 zone, still 0.13% below its opening price.
In the absence of economic news or event and with the calendar empty for the rest of the day, USD/JPY is likely to extend its consolidative phase, with the 117.75 area, Jan 16 high, as immediate resistance to watch.
BoJ decision this week
The Bank of Japan meets on Wednesday and according to the BBH analyst team, it is likely reduce its growth and inflation forecasts. “Yet cutting the inflation forecast will fuel expectations for even more monetary efforts unless there is a clear signal from BOJ Governor Kuroda”.