21 Jul 2015
USD/JPY: early demand in Tokyo after BoJ minutes
FXStreet (Guatemala) - USD/JPY is currently trading at 124.34 with a high of 124.38 and a low of 124.25.
USD/JPY is bid, making its largest gain, albeit just over 10 pips, since the subdued overnight sessions, on the open post a benign set of BoJ minutes with the Yen hardly reacting. Members were agreeing that trend inflation will improve although while it was still in debate between the members as to the performance of the QQE programme. Meanwhile, the greenback continues to trade better bid, albeit with a little less urgency from investors to be long in a slow start to the week except for Gold making an impromptu entry to the week yesterday when 5 tonnes of the yellow metal was dumped on China.
Meanwhile, the Yen is buoyant on the 124 handle and has not turned back since 123.90 in a steady channel supported at 124.18. Without there being anything around the corner to shift the imbedded divergences between the Fed and BoJ and while Grexit risk has been negated at this juncture of the Greek saga, the bets on are the table to a resilient unit within the 120's.
Valeria Bednarik, chief analyst at FXStreet explained the technical picture, "In the 4 hours chart, the price remains near the daily high established at 124.37, while the RSI indicator hovers around overbought levels, although the Momentum indicator continues to diverge lower, approaching its 100 level, which increases the risk of a bearish move. Nevertheless, the pair can decline down to 123.30 without actually confirming a top is in place. Buying interest is expected to surge on approaches to this level, whilst a price acceleration above 124.45 is required to see the pair advancing towards the 125.00 price zone."
USD/JPY is bid, making its largest gain, albeit just over 10 pips, since the subdued overnight sessions, on the open post a benign set of BoJ minutes with the Yen hardly reacting. Members were agreeing that trend inflation will improve although while it was still in debate between the members as to the performance of the QQE programme. Meanwhile, the greenback continues to trade better bid, albeit with a little less urgency from investors to be long in a slow start to the week except for Gold making an impromptu entry to the week yesterday when 5 tonnes of the yellow metal was dumped on China.
Meanwhile, the Yen is buoyant on the 124 handle and has not turned back since 123.90 in a steady channel supported at 124.18. Without there being anything around the corner to shift the imbedded divergences between the Fed and BoJ and while Grexit risk has been negated at this juncture of the Greek saga, the bets on are the table to a resilient unit within the 120's.
Valeria Bednarik, chief analyst at FXStreet explained the technical picture, "In the 4 hours chart, the price remains near the daily high established at 124.37, while the RSI indicator hovers around overbought levels, although the Momentum indicator continues to diverge lower, approaching its 100 level, which increases the risk of a bearish move. Nevertheless, the pair can decline down to 123.30 without actually confirming a top is in place. Buying interest is expected to surge on approaches to this level, whilst a price acceleration above 124.45 is required to see the pair advancing towards the 125.00 price zone."