30 Apr 2015
USD/JPY: Bears protecting 119 handle ahead of BoJ
FXStreet (Guatemala) - USD/JPY is currently trading at 118.93 with a high of 119.18 and a low of 118.91.
USD/JPY is currently trading to the downside in the Tokyo open, reluctant to allow the greenback space on the 119 handle ahead of the BoJ coming up. The sessions over night were very volatile with the release of the US GDP Q1 data that had the greenback to its knees before the FOMC came along and picked it up, brushing it down with verbiage in the statement that patched up the holes in the economy and delivered an optimistic outlook ahead, acknowledging the poor performance but brushing aside poor results as indicating that they were only temporary in an otherwise inflationary outlook ahead. June seems to be off the cards but the door is open for a hike at in Q4.
The BoJ is unlikely to offer any changes to their already aggressive QE programme. However there could be some interest in the semi-annual economic outlook and inflation forecasts for both the rest of 2015 and 2016 are due. Technically, 118.80 is the bears first target and a break below here exposes the mid point of the handle and the late Feb-April support line at 118.20/50, guarding a new range to the downside from 118.80 to 115.80/20 Jan lows again.
USD/JPY is currently trading to the downside in the Tokyo open, reluctant to allow the greenback space on the 119 handle ahead of the BoJ coming up. The sessions over night were very volatile with the release of the US GDP Q1 data that had the greenback to its knees before the FOMC came along and picked it up, brushing it down with verbiage in the statement that patched up the holes in the economy and delivered an optimistic outlook ahead, acknowledging the poor performance but brushing aside poor results as indicating that they were only temporary in an otherwise inflationary outlook ahead. June seems to be off the cards but the door is open for a hike at in Q4.
The BoJ is unlikely to offer any changes to their already aggressive QE programme. However there could be some interest in the semi-annual economic outlook and inflation forecasts for both the rest of 2015 and 2016 are due. Technically, 118.80 is the bears first target and a break below here exposes the mid point of the handle and the late Feb-April support line at 118.20/50, guarding a new range to the downside from 118.80 to 115.80/20 Jan lows again.