27 Jul 2015
USD/JPY: Heading towards key support at 55 DMA
FXStreet (Guatemala) - USD/JPY is currently trading at 123.25 with a high of 123.84 and a low of 123.00.
USD/JPY has emerged from the highs and heavy while moving in towards the V shape recovery with 123.20 supporting for now. USD/JPY has been a strong bid from below the 120.80 territory at the start of this month but 124 has been tough territory for the bulls and with the FOMC this week it is unlikely that the pair will be able to create significant enough demand to accomplish higher grounds with there being a lack of key drivers before the meeting taking place later in the week.
The meeting is expected to be neutral despite that it will be the last one until September. The majority are in anticipation of a rate hike from the Fed in September but this may not be a given in the statement on this event around and markets could be left hanging on. what will be key is the tone in respect to the overall performance of the economy. Analysts at Brown Brothers Harriman suggested this and said that there would be a non-committal statement on the timing of the liftoff, as Yellen did in her recent Congressional testimony.
USD/JPY is testing towards base of cloud support
USD/JPY is heavy and well below key resistance of the June highs on the 124 handle. It is continued by a descending trend-line from there. Karen Jones, chief analyst at Commerzbank explained that dips lower last week held over the 20 day ma at 123.14 and cloud support is available down to 122.18," The market remains well placed for further gains while above there."
Meanwhile, analysts at BBH see the downside in the pair to be limited around 122.90/123.10 and so does Emmanuel Ng, FX Strategist at OCBC Bank, who argued that pullbacks could be well contained around 122.92, the 55 DMA.
USD/JPY has emerged from the highs and heavy while moving in towards the V shape recovery with 123.20 supporting for now. USD/JPY has been a strong bid from below the 120.80 territory at the start of this month but 124 has been tough territory for the bulls and with the FOMC this week it is unlikely that the pair will be able to create significant enough demand to accomplish higher grounds with there being a lack of key drivers before the meeting taking place later in the week.
The meeting is expected to be neutral despite that it will be the last one until September. The majority are in anticipation of a rate hike from the Fed in September but this may not be a given in the statement on this event around and markets could be left hanging on. what will be key is the tone in respect to the overall performance of the economy. Analysts at Brown Brothers Harriman suggested this and said that there would be a non-committal statement on the timing of the liftoff, as Yellen did in her recent Congressional testimony.
USD/JPY is testing towards base of cloud support
USD/JPY is heavy and well below key resistance of the June highs on the 124 handle. It is continued by a descending trend-line from there. Karen Jones, chief analyst at Commerzbank explained that dips lower last week held over the 20 day ma at 123.14 and cloud support is available down to 122.18," The market remains well placed for further gains while above there."
Meanwhile, analysts at BBH see the downside in the pair to be limited around 122.90/123.10 and so does Emmanuel Ng, FX Strategist at OCBC Bank, who argued that pullbacks could be well contained around 122.92, the 55 DMA.