Monday, November 2, 2015

USD/JPY bearish, capped at 1hr 200 SMA

FXStreet (Guatemala) - USD/JPY is opening the week on the back-foot and Asian equities follow suit of a weak close on Wall Street and data misses on China weighing on Asia as well.

The price has been trying to recover below the 200 SMA on the hourly chart that is currently at 120.54 after the downtrend from 121.47 at the end of last week's business that bottomed at 120.27.

The week ahead offers the BoJ's monetary policy minutes that may be less of an event given the recent meeting and their semi annual forecasts, although markets will tune in looking for further clues for a possible sense of timing when further easing might be appropriate while the economy remains off-course from their inflation target. Nonfarm payrolls comes as the key event on the board to start the month off while markets look for timings of a possible Fed rate hike.

USD/JPY levels

Technically, while we remain in familiar ranges Valeria Bednarik, chief analyst at FXStreet explained, " In the 4 hours chart, the technical indicators have also turned south and are crossing their mid-lines towards the downside, whilst the 100 and 200 SMAs converge around 120.10, providing and immediate short term support. "
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