Thursday, October 8, 2015

USD/JPY: downside limited on risk-on equity display's - FXStreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that BOJ's on-hold stance was pretty much as expected.

Key Quotes:

The Bank of Japan economic policy meeting of this October 7th passed with no changes, and the Japanese yen appreciated afterwards, despite risk appetite prevailed among stocks' traders."

"The USD/JPY pair fell down to 119.75 intraday, but recovered back above the 120.00 level, where is now consolidating with a pretty neutral technical stance, both short and long term."

"The 1 hour chart shows that the technical indicators recovered from oversold levels, but turned flat below their mid-lines, whilst the price is stuck around the 100 and 200 SMAs, both converging with the current price.

In the 4 hours chart, the price is a handful of pips below its moving averages, while the technical indicators are also flat around their mid-lines. Given that stocks in Europe and America present a positive tone, the downside in the pair seems limited, with the immediate resistance now at 120.35, followed later by the 120.70 price zone."
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