21 Jan 2015
USD/JPY pressured as BoJ maintains stance of easing – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist, at Scotiabank, comments that USD/JPY trades pressured as a result of BoJ’s decision to keep its policy unchanged, down 0.8% with the short-term outlook being bearish for the pair.
Key Quotes
“JPY is strong, up 0.8% following the BoJ policy decision in which the annual pace of asset purchases was maintained as policymakers made upward revisions to the forecast for growth while adjusting for a near term decline in CPI due to the impact of lower oil prices.”
“JPY gains continued in response to Gov. Kuroda’s press conference as he maintained a confident tone with regards to the current policy stance.”
“USDJPY short-term technicals: bearish-neutral—momentum indicators have softened to neutral in response to the recent rally in USDJPY back toward its 50 day MA (118.68). We await a decisive break of 118.71 for confirmation of further gains while a close below 118.00 would shift the focus toward further downside.”
Key Quotes
“JPY is strong, up 0.8% following the BoJ policy decision in which the annual pace of asset purchases was maintained as policymakers made upward revisions to the forecast for growth while adjusting for a near term decline in CPI due to the impact of lower oil prices.”
“JPY gains continued in response to Gov. Kuroda’s press conference as he maintained a confident tone with regards to the current policy stance.”
“USDJPY short-term technicals: bearish-neutral—momentum indicators have softened to neutral in response to the recent rally in USDJPY back toward its 50 day MA (118.68). We await a decisive break of 118.71 for confirmation of further gains while a close below 118.00 would shift the focus toward further downside.”