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25 Apr 2016
USD/JPY: bets are a BoJ on hold, stronger yen
USD/JPY has been better offered through the U.S. shift, scoring an intra-day high of 111.84 and a low of 110.83.
As we build up to the FOMC and BoJ, there are going to be market chatters and that is what we got recently with speculation that the BoJ will remain on hold this meeting around despite the recent call to action style of announcements from Kuroda and hype built around further easing from the BoJ. The bulls advance have been capped as a result and the US session has seen a slide to test below the 111 handle. Instead, June is sighted as the next opportunity where the BoJ will act.
USD/JPY levels
Technically, however, the pair presents a persistent bullish tone, as suggested by chief analyst at FXStreet, Valeria Bednarik. " In the 4 hours chart, the technical indicators have turned sharply higher within positive territory, after correcting previous overbought readings," she explained and added, "Furthermore, the recovery above 111.00, in spite of stocks' declines, suggests that JPY bulls have taken a step aside, whilst sellers are gathering pace. The downward potential is now seen limited, as long as the price manages to hold above 110.65, a strong static support zone."
As we build up to the FOMC and BoJ, there are going to be market chatters and that is what we got recently with speculation that the BoJ will remain on hold this meeting around despite the recent call to action style of announcements from Kuroda and hype built around further easing from the BoJ. The bulls advance have been capped as a result and the US session has seen a slide to test below the 111 handle. Instead, June is sighted as the next opportunity where the BoJ will act.
USD/JPY levels
Technically, however, the pair presents a persistent bullish tone, as suggested by chief analyst at FXStreet, Valeria Bednarik. " In the 4 hours chart, the technical indicators have turned sharply higher within positive territory, after correcting previous overbought readings," she explained and added, "Furthermore, the recovery above 111.00, in spite of stocks' declines, suggests that JPY bulls have taken a step aside, whilst sellers are gathering pace. The downward potential is now seen limited, as long as the price manages to hold above 110.65, a strong static support zone."