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17 Jul 2013
USD/JPY rally falters and returns to support
FXstreet.com (New York) - The USD/JPY technical pair has been unable to garner any sort of rally during Asian trading Wednesday, with the BoJ failing to spark any prolonged recovery, ultimately providing a pause ahead of the Bernanke speech later today.
BoJ opts for status quo
The BoJ released its minutes that reiterated a policy continuation that left little to the imagination. Indeed, the YoY rate of change in the CPI is likely to gradually turn positive. Moreover, the BoJ will continue with quantitative and qualitative monetary easing, aiming to achieve the price stability target of 2%, as long as it is necessary for maintaining that target in a stable manner.
USD/JPY strategic bias
The USD/JPY has now settled at the 99.15 handle, notching an advance of +0.03% Wednesday during Asian trading. While the pair is currently trading at support at 99.15 (20-day SMA), additional measures lie below at 98.97 (July 12 low), ahead of 98.71 (July 11 low). On the ascension, resistances will trigger at 99.29 (55-day MA), onto 99.57 (200-day SMA).
According to Jim Langlands at FX Charts, “Technically, a sustained break of the USD/JPY at 98.80 could see an acceleration towards the downside target at 98.00, below which 98.20 and 97.80 are strong supports. If wrong however, a turn to the topside would see the pair back at 100.00 with downtrend resistance at 100.25. We are ultimately unlikely to head back above here ahead of Bernanke and as such, it looks as though it will be the downside that could come under pressure.”
BoJ opts for status quo
The BoJ released its minutes that reiterated a policy continuation that left little to the imagination. Indeed, the YoY rate of change in the CPI is likely to gradually turn positive. Moreover, the BoJ will continue with quantitative and qualitative monetary easing, aiming to achieve the price stability target of 2%, as long as it is necessary for maintaining that target in a stable manner.
USD/JPY strategic bias
The USD/JPY has now settled at the 99.15 handle, notching an advance of +0.03% Wednesday during Asian trading. While the pair is currently trading at support at 99.15 (20-day SMA), additional measures lie below at 98.97 (July 12 low), ahead of 98.71 (July 11 low). On the ascension, resistances will trigger at 99.29 (55-day MA), onto 99.57 (200-day SMA).
According to Jim Langlands at FX Charts, “Technically, a sustained break of the USD/JPY at 98.80 could see an acceleration towards the downside target at 98.00, below which 98.20 and 97.80 are strong supports. If wrong however, a turn to the topside would see the pair back at 100.00 with downtrend resistance at 100.25. We are ultimately unlikely to head back above here ahead of Bernanke and as such, it looks as though it will be the downside that could come under pressure.”