16 Jul 2015
USD/JPY: capped at 124 awaiting Greek parliament vote
FXStreet (Guatemala) - USD/JPY is currently trading at 123.76 with a high of 123.98 and low of 123.25.
USD/JPY has rallied overnight in the US session on the back of Yellen's testimony and extended the downside in the Yen post the BoJ's position to hold.
Analysts at Brown Brothers Harriman explained , "As expected, it shaved this fiscal year's growth to 1.7% from 2.0%. It also pared its inflation forecasts. This year was taken down to 0.7% from 0.8%. Next year's forecast was shaved to 1.9% from 2.0%. The FY2017 forecast was left unchanged at 1.8%. Nowhere does the BOJ project hitting its inflation target. Yet Kuroda gave no hint that more QE is being considered."
The major has been bid for best art of the week starting as Greece was making progress towards securing a third bailout package after Tsipras bowed down to the reform changes that the creditors and EUR leaders require. We now await the outcome of the Greek Parliamentary vote. Livesquawk reported earlier over night that 107 out of 201 Syriza members call for no in the Greek parliament vote and the 107 members have published a declaration condemning Greek PM Tsipras.
USD/JPY bullish price action
We went from 122.50 to 123.70 yesterday which was an extension of the V-shape recovery from 120.40, and we made highs just shy of the 124 handle as market ran the risk with an upbeat delivery from Yellen.
USD/JPY technically overbought
Valeria Bednarik, chief analyst at FXStreet explained the technical conditions surrounding USD/JPY's. "The short term the 1 hour chart shows that the 100 SMA has extended is advance above the 200 SMA below the current price, whilst the Momentum indicator turned lower and approaches the 100 level, and the RSI indicator also heads lower from overbought territory, all of which suggest the pair may extend its decline in the short term.
In the 4 hours chart, the Momentum indicator is approaching its 100 level while the RSI indicator turned south from overbought levels, supporting the shorter term view, particularly if the price extends below 123.30, the immediate intraday support."
USD/JPY has rallied overnight in the US session on the back of Yellen's testimony and extended the downside in the Yen post the BoJ's position to hold.
Analysts at Brown Brothers Harriman explained , "As expected, it shaved this fiscal year's growth to 1.7% from 2.0%. It also pared its inflation forecasts. This year was taken down to 0.7% from 0.8%. Next year's forecast was shaved to 1.9% from 2.0%. The FY2017 forecast was left unchanged at 1.8%. Nowhere does the BOJ project hitting its inflation target. Yet Kuroda gave no hint that more QE is being considered."
The major has been bid for best art of the week starting as Greece was making progress towards securing a third bailout package after Tsipras bowed down to the reform changes that the creditors and EUR leaders require. We now await the outcome of the Greek Parliamentary vote. Livesquawk reported earlier over night that 107 out of 201 Syriza members call for no in the Greek parliament vote and the 107 members have published a declaration condemning Greek PM Tsipras.
USD/JPY bullish price action
We went from 122.50 to 123.70 yesterday which was an extension of the V-shape recovery from 120.40, and we made highs just shy of the 124 handle as market ran the risk with an upbeat delivery from Yellen.
USD/JPY technically overbought
Valeria Bednarik, chief analyst at FXStreet explained the technical conditions surrounding USD/JPY's. "The short term the 1 hour chart shows that the 100 SMA has extended is advance above the 200 SMA below the current price, whilst the Momentum indicator turned lower and approaches the 100 level, and the RSI indicator also heads lower from overbought territory, all of which suggest the pair may extend its decline in the short term.
In the 4 hours chart, the Momentum indicator is approaching its 100 level while the RSI indicator turned south from overbought levels, supporting the shorter term view, particularly if the price extends below 123.30, the immediate intraday support."