22 Jan 2014
USD/JPY to break higher for 105.45?
FXstreet.com (Guatemala) - USD/JPY is range bound currently but is there the possibility of a break higher?
The BoJ policy meeting ended with the current pace of monetary expansion maintained, as expected”, explained TD Securities strategists. Strategists at Brown Brothers Harriman explained “The BOJ left policy unchanged, with the current plan being to increase the monetary base by ¥60-70trn until the inflation target is achieved. Strategists at Westpac Banking Corporation AB said, “US interest rates and the US dollar rose into the London morning, influenced by a WSJ article from Fedwatcher Hilsenrath saying the Fed will taper its QE program by another $10bn next week (released in Asia Tue), but reversed in New York despite no key data or official comment”. Karen Jones, chief analyst at Commerzbank said that they maintain a near term upside bias and suspect that the 102.85 low was the corrective low and this suggests that the market will re-test the 105.45/50 zone here and a deeper retracement taking hold to 102.05 and possibly 101.00, the 38.2% and 50% retracements of the move up from October.
USD/JPY Levels
The 20 DMA is 104.51, the 50 DMA is 103.03 and the 200 DMA is 99.85. RSI (14) reads 51.69. Supports are ascending from 103.64,103.85, 103.97, 104.22. Spot is 104.75 while resistances are 104.92,105.13 and 105.50.
The BoJ policy meeting ended with the current pace of monetary expansion maintained, as expected”, explained TD Securities strategists. Strategists at Brown Brothers Harriman explained “The BOJ left policy unchanged, with the current plan being to increase the monetary base by ¥60-70trn until the inflation target is achieved. Strategists at Westpac Banking Corporation AB said, “US interest rates and the US dollar rose into the London morning, influenced by a WSJ article from Fedwatcher Hilsenrath saying the Fed will taper its QE program by another $10bn next week (released in Asia Tue), but reversed in New York despite no key data or official comment”. Karen Jones, chief analyst at Commerzbank said that they maintain a near term upside bias and suspect that the 102.85 low was the corrective low and this suggests that the market will re-test the 105.45/50 zone here and a deeper retracement taking hold to 102.05 and possibly 101.00, the 38.2% and 50% retracements of the move up from October.
USD/JPY Levels
The 20 DMA is 104.51, the 50 DMA is 103.03 and the 200 DMA is 99.85. RSI (14) reads 51.69. Supports are ascending from 103.64,103.85, 103.97, 104.22. Spot is 104.75 while resistances are 104.92,105.13 and 105.50.