8 Apr 2014
USD/JPY extends the decline to 102.20
FXStreet (Edinburgh) - The Japanese yen continues its appreciation against the greenback on Tuesday, dragging the USD/JPY to fresh 2-week lows in sub-102.20 levels.
USD/JPY capped by 104.00 so far
The pair is extending its consolidation pattern although it remains unable to convincingly break above the 104.00 handle despite the recent risk-on context. In the data front, Japanese current account surplus surprised investors to the upside, coming in at ¥612.7 billion in February. Further data showed the BoJ stayed put in today’s monetary policy meeting, matching the broader consensus. Analysts at BBH commented, “BOJ Governor Kuroda continues to signal a desire to look past the sales tax increase and expects the economic recovery not to be derailed. This means that there is no sense of urgency to respond to some immediate weakness. He will likely assume whatever disruption is seen is transitory”.
USD/JPY levels to watch
The pair is now retreating 0.85% at 102.20 with the immediate support at 102.06 (daily cloud base) ahead of 102.02 (low Mar.28) and finally 101.71 (low Mar.27). On the upside, a breakout of 103.10 (daily cloud top) would open the door to 103.81 (low Apr.3) and then 104.12 (high Apr.3).
USD/JPY capped by 104.00 so far
The pair is extending its consolidation pattern although it remains unable to convincingly break above the 104.00 handle despite the recent risk-on context. In the data front, Japanese current account surplus surprised investors to the upside, coming in at ¥612.7 billion in February. Further data showed the BoJ stayed put in today’s monetary policy meeting, matching the broader consensus. Analysts at BBH commented, “BOJ Governor Kuroda continues to signal a desire to look past the sales tax increase and expects the economic recovery not to be derailed. This means that there is no sense of urgency to respond to some immediate weakness. He will likely assume whatever disruption is seen is transitory”.
USD/JPY levels to watch
The pair is now retreating 0.85% at 102.20 with the immediate support at 102.06 (daily cloud base) ahead of 102.02 (low Mar.28) and finally 101.71 (low Mar.27). On the upside, a breakout of 103.10 (daily cloud top) would open the door to 103.81 (low Apr.3) and then 104.12 (high Apr.3).