Thursday, September 17, 2015

USD/JPY little changed on BOJ’s Kuroda, stays around 120.80

FXStreet (Mumbai) - USD/JPY keeps its upbeat momentum intact in the European morning, as the markets remain unresponsive to the Bank of Japan’s (BOJ) Governor Kuroda’s speech underway.

USD/JPY testing 121 handle

Currently, the USD/JPY pair trades 0.23% higher at 120.84, having posted a day’s high at 120.93 and a day’s low at 120.35. The major is seen gathering pace in a bid to storm its way through the 121 handle as the Japanese yen was heavily sold-off, despite the latest upbeat comments from the BOJ’s Kuroda.

BOJ’s Kuroda echoed the same statements as heard earlier this week, at the BOJ press conference followed by the monetary policy decision.

Markets continue to ditch the Japanese currency following the country’s ratings downgrade by S & P and the latest trade figures. The trade deficit expanded from JPY268.1 billion in July to JPY569.7 billion last month, coming in slightly weaker than the forecast deficit of JPY540 billion.

Looking ahead, the highly anticipated Fed's rate decision and press conference is expected to spur higher volatility, as the era of record low interest rates might come to an end.

USD/JPY Technical levels to consider

To the upside, the next resistance is located 121 (Psychological levels) and above which it could extend 121.34 (Sept 10 High). To the downside immediate support might be located at 120.08 (Sept 16 Low) below that at 119.83 (Sept 14 Low).
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