21 Jan 2015
USD/JPY bounces off 117.20
FXStreet (Edinburgh) - The greenback is now gathering steam vs. its Japanese counterpart on Wednesday, lifting USD/JPY back to the upper-117.00s.
USD/JPY dragged lower by BoJ
The steady stance by the BoJ in its meeting today, leaving intact the benchmark rates and extending one extra year the “Stimulating Bank Lending Facility” and the “Growth-Supporting Funding Facility” gave support to the JPY and triggered a correction lower from the mid-118.00s. Regarding to the inflation forecasts, the central bank revised lower its CPI prospects for this year to 0.9% and 1.0% for 2016, from 1.2% and 1.7%, respectively.
Analysts at OCBC Bank commented “the pair expected to anchor itself in the vicinity of its 55-day MA (118.36) in the interim with 120.00 providing a near term cap while 116.65 is expected to border the south”.
USD/JPY levels to consider
As of writing the pair is down 0.79% at 117.76 facing the next support at 117.30 (low Jan.21) ahead of 116.93 (low Jan.19) and then 115.85 (low Jan.14). On the flip side, a break above 118.80 (high Jan.21) would aim for 118.87 (high Jan.20) and finally 118.94 (21-d MA).
USD/JPY dragged lower by BoJ
The steady stance by the BoJ in its meeting today, leaving intact the benchmark rates and extending one extra year the “Stimulating Bank Lending Facility” and the “Growth-Supporting Funding Facility” gave support to the JPY and triggered a correction lower from the mid-118.00s. Regarding to the inflation forecasts, the central bank revised lower its CPI prospects for this year to 0.9% and 1.0% for 2016, from 1.2% and 1.7%, respectively.
Analysts at OCBC Bank commented “the pair expected to anchor itself in the vicinity of its 55-day MA (118.36) in the interim with 120.00 providing a near term cap while 116.65 is expected to border the south”.
USD/JPY levels to consider
As of writing the pair is down 0.79% at 117.76 facing the next support at 117.30 (low Jan.21) ahead of 116.93 (low Jan.19) and then 115.85 (low Jan.14). On the flip side, a break above 118.80 (high Jan.21) would aim for 118.87 (high Jan.20) and finally 118.94 (21-d MA).