8 May 2015
USD/JPY advances on speculation of more BOJ easing
FXStreet (Mumbai) - The Japanese Yen was offered in the Asian session, taking the USD/JPY pair to a high of 119.95 on speculation that the Bank of Japan would do more in order to achieve its inflation target.
Rises above 50-DMA
The pair bounced-off from the 119.04 levels to trade today above its 50-DMA located at 119.77 levels. The yen came under pressure after the minutes of the April board meeting released earlier today showed Bank of Japan members were concerned about the ability to hit a target of 2% sustained inflation in the coming year. The minutes also showed some members are not in favor of tapering QQE at the moment, as it would constrain the inflationary impact.
Consequently, the markets preferred the US dollar over the Yen. The further move in the pair is likely to be decided by the US Non-farm payrolls data for the month of April.
USD/JPY Technical Levels
The pair currently trades at 119.90. The immediate resistance is seen at 120.08, above which the pair could rise to 120.48. On the flip side, a break below 119.77 (50-DMA), could drive the pair lower to 119.25 (100-DMA).
Rises above 50-DMA
The pair bounced-off from the 119.04 levels to trade today above its 50-DMA located at 119.77 levels. The yen came under pressure after the minutes of the April board meeting released earlier today showed Bank of Japan members were concerned about the ability to hit a target of 2% sustained inflation in the coming year. The minutes also showed some members are not in favor of tapering QQE at the moment, as it would constrain the inflationary impact.
Consequently, the markets preferred the US dollar over the Yen. The further move in the pair is likely to be decided by the US Non-farm payrolls data for the month of April.
USD/JPY Technical Levels
The pair currently trades at 119.90. The immediate resistance is seen at 120.08, above which the pair could rise to 120.48. On the flip side, a break below 119.77 (50-DMA), could drive the pair lower to 119.25 (100-DMA).