29 Jul 2013
USD/JPY pulling back after Kuroda headlines make the rounds
FXstreet.com (Barcelona) - The USD/JPY rallied up to the midpoint of the session and quickly backed off after the BOJ’s Kuroda made his speech regarding the Japanese economic and policy outlook.
Kuroda’s speech falls in line with what traders have been discussing recently
In Mr. Kuroda’s speech, we heard about continued progress on the economy, signs that deflation is abating and continued concerns about China’s ability to navigate a soft landing for their economy – all of which we’ve heard before from analysts and the Japanese players themselves in recent days / weeks. The one departure from recent talk was Kuroda’s hinting at staying with sales tax hikes – but in a two-step process. This is in a bit of contrast to Prime Minister Abe’s recently voiced concerns about implementing the hikes while the recovery is so delicate.
The USD/JPY is still down but off of session lows at 97.80 at 05:08 GMT.
USD/JPY technical outlook
Some technicians are calling for a move down to 92.53 before the macro bull trend in the cross resumes. Shorter-term support for USD/JPY comes in at the Fibonacci projection of 97.64. Below that level comes the session lows at 97.62 and the key “bulls’ last stand” or “correction support” at 97.30. Resistance for USD/JPY comes in at session highs of 98.33 and is backed up by previous support / now resistance of 98.88 and Thursday’s peak of 100.47.
Kuroda’s speech falls in line with what traders have been discussing recently
In Mr. Kuroda’s speech, we heard about continued progress on the economy, signs that deflation is abating and continued concerns about China’s ability to navigate a soft landing for their economy – all of which we’ve heard before from analysts and the Japanese players themselves in recent days / weeks. The one departure from recent talk was Kuroda’s hinting at staying with sales tax hikes – but in a two-step process. This is in a bit of contrast to Prime Minister Abe’s recently voiced concerns about implementing the hikes while the recovery is so delicate.
The USD/JPY is still down but off of session lows at 97.80 at 05:08 GMT.
USD/JPY technical outlook
Some technicians are calling for a move down to 92.53 before the macro bull trend in the cross resumes. Shorter-term support for USD/JPY comes in at the Fibonacci projection of 97.64. Below that level comes the session lows at 97.62 and the key “bulls’ last stand” or “correction support” at 97.30. Resistance for USD/JPY comes in at session highs of 98.33 and is backed up by previous support / now resistance of 98.88 and Thursday’s peak of 100.47.