21 May 2015
USD/JPY break out potential on Fed vs BoJ
FXStreet (Guatemala) - USD/JPY is currently trading at 121.08 with a high of 121.31 and a low of 120.83.
USD/JPY bears are not giving the bulls and easy go of things on the bid while the 121 handle poses a threat to the upside and a potential break put of the fourth month sticky range. There have been a number of contributing factors to the Yen's weakness and dollar strength. Stocks had been performing better this weak, weighing on the Yen while the ECB announced intentions to front load their QE programme crating flows out of the euro in to the dollar while renewed clarification of the FOMC's optimism for global growth was portrayed in their minutes also supporting the US dollar. Next up, BoJ statement and press conference tonight in Japan.
USD/JPY on BoJ tonight
"The BoJ rate decision this week should be a non-event as it was barely a month ago that the last meeting was held. BoJ watching will become more interesting in the summertime when we should start to see the follow-through of wage and traded goods inflation following the annual spring negotiations. " - explained analysts at TD Securities.
Technically, there is the potential of a breakout if bulls can manage a close on the 122 handle with 124.59 as target ahead of 128.45 underpinned by fundamentals of the divergences between the Fed and BoJ. However, continued struggles on the 121 and 120 handle brings 118.33 in to focus again. Levels to the downside come as 120.80, 120.00/40, 119.00/42 and the 118.80 level come as supports before 118.30, 117.80 and the well defined 116 level.
USD/JPY bears are not giving the bulls and easy go of things on the bid while the 121 handle poses a threat to the upside and a potential break put of the fourth month sticky range. There have been a number of contributing factors to the Yen's weakness and dollar strength. Stocks had been performing better this weak, weighing on the Yen while the ECB announced intentions to front load their QE programme crating flows out of the euro in to the dollar while renewed clarification of the FOMC's optimism for global growth was portrayed in their minutes also supporting the US dollar. Next up, BoJ statement and press conference tonight in Japan.
USD/JPY on BoJ tonight
"The BoJ rate decision this week should be a non-event as it was barely a month ago that the last meeting was held. BoJ watching will become more interesting in the summertime when we should start to see the follow-through of wage and traded goods inflation following the annual spring negotiations. " - explained analysts at TD Securities.
Technically, there is the potential of a breakout if bulls can manage a close on the 122 handle with 124.59 as target ahead of 128.45 underpinned by fundamentals of the divergences between the Fed and BoJ. However, continued struggles on the 121 and 120 handle brings 118.33 in to focus again. Levels to the downside come as 120.80, 120.00/40, 119.00/42 and the 118.80 level come as supports before 118.30, 117.80 and the well defined 116 level.