FXStreet (Mumbai) - USD/JPY was caught by a fresh bid wave in the European morning and looks to retest fresh weekly high reached in the late Asian session as markets turn attention towards further BOJ easing and ignoring the fall in the European indices.
USD/JPY rises from 120.70
Currently, the USD/JPY pair trades 0.38% higher at 120.98, in another run to extend beyond 121.29 – fresh weekly highs. The major gained further momentum and climbed back near 121 handle as the European opening bells brought along fresh offers for the Japanese currency, as the European traders digest the latest comments by Japan’s Yamamoto.
The USD/JPY rallied nearly 100 pips in late-Asia in a knee-jerk reaction to Japan’s ruling party member Yamamoto’s comments. Yamamoto noted that 30 Oct BOJ meeting would be a `good opportunity' for more easing, adding that is imperative inflation reaches BOJ goal around H1FY16. While also adding, Japan should issue new JGB’s for stimulus if needed.
Later today, markets will continue to assess the possibilities of another round of QQE by BOJ, keeping the pair supported. On the data space, weekly jobless claims will fill in an otherwise data-dry US calendar tonight.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 121.29 (Today’s High) levels and above which it could extend 121.50 (Psychological Levels). To the downside immediate support might be located at 119.98 (Today’s Low) below that at 119.62 (Sept 3 Low).
For more information, read our latest forex news.
No comments:
Post a Comment