29 Apr 2015
USD/JPY pierces through 100-DMA near 119.30
FXStreet (Mumbai) - The yen lost ground and fell in to losses versus the US dollar in the mid-European session, taking USD/JPY to fresh two-day highs above 119 handle, as markets begin to weigh the monetary policy divergence factor ahead conclusion of the FOMC meeting on Wednesday and the BOJ rate decision on Thursday.
USD/JPY storms above 119
Currently, the USD/JPY pair trades higher by 0.38% at fresh two-day highs of 119.35, finally breaking above the 5-DMA resistance located at 119. The USD/JPY pair broke its channel side trend and shot higher after diverging monetary policy outlook between the US and Japan ahead of their respective monetary policy decisions, weigh on investors’ minds.
Meanwhile, the major also jumped as the longer and shorter duration US treasury yields rebounded, with 10-yr yields at 2% and 2-yields at 0.567%, both gaining nearly 1.50% on the day.
Traders remain more nervous ahead of the conclusion of Fed’s 2-day policy meeting with the FOMC statement due out later today. The Fed should confirm the neutral stance and keep the "data-dependent" language, while traders are under pricing September's rate hike.
On the other hand, the Bank of Japan (BOJ) will be making its announcement on Thursday. Inflation expectations in Japan are declining, and the central bank might offer hints as to whether it is ready to ease monetary policy further.
Meanwhile, markets now turn their focus towards US Prelim GDP print due later in the day. While FOMC statement remains in the spotlight.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.52 (20-DMA) levels and above which it could extend gains 119.67 (April 24 High) levels. To the downside immediate support might be located at 118.76 (Today’s Low) below that at 118.51 (April 20 Low) levels.
USD/JPY storms above 119
Currently, the USD/JPY pair trades higher by 0.38% at fresh two-day highs of 119.35, finally breaking above the 5-DMA resistance located at 119. The USD/JPY pair broke its channel side trend and shot higher after diverging monetary policy outlook between the US and Japan ahead of their respective monetary policy decisions, weigh on investors’ minds.
Meanwhile, the major also jumped as the longer and shorter duration US treasury yields rebounded, with 10-yr yields at 2% and 2-yields at 0.567%, both gaining nearly 1.50% on the day.
Traders remain more nervous ahead of the conclusion of Fed’s 2-day policy meeting with the FOMC statement due out later today. The Fed should confirm the neutral stance and keep the "data-dependent" language, while traders are under pricing September's rate hike.
On the other hand, the Bank of Japan (BOJ) will be making its announcement on Thursday. Inflation expectations in Japan are declining, and the central bank might offer hints as to whether it is ready to ease monetary policy further.
Meanwhile, markets now turn their focus towards US Prelim GDP print due later in the day. While FOMC statement remains in the spotlight.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.52 (20-DMA) levels and above which it could extend gains 119.67 (April 24 High) levels. To the downside immediate support might be located at 118.76 (Today’s Low) below that at 118.51 (April 20 Low) levels.