22 Jul 2015
USD/JPY: Yen riding higher on BOJ Kuroda
FXStreet (Mumbai) - The Japanese currency remained better bid versus the US dollar in the mid-Asian session, keeping USD/JPY in red below 124 levels. The major remains largely subdued after the yen received fresh impetus from Bank of Japan (BOJ) Kuroda’s comments while the greenback also retreated on profit-taking.
USD/JPY capped below 123.90
Currently, the USD/JPY pair trades -0.12% lower at 123.74, recovering from fresh session lows reached at 123.62. USD/JPY maintained the offered tone in Asia as markets continue to digest Tuesday’s hawkish comments from BOJ Kuroda which lifted the Japanese currency from fresh monthly lows against the greenback.
Kuroda told reporters as quoted by Reuters on Tuesday, "Right now, the inflation rate is close to zero." “The inflation rate should start to accelerate considerably in coming months." He further stressed that he didn't see a reason to expand the bank's QQE, as the inflation will gradually rise in the coming months.
The USD/JPY was seen below its six-week high as traders opted for locking earlier profits once the technical resistance was hit. US dollar index - a virtual measure of the greenback's power against its six major peers – stood muted at 97.47.
Markets look forward to today’s housing data from the US while Thursday JPY trade balance will be closely watched in absence of any other significant data releases due later this session.
USD/JPY Technical Levels
To the upside, the next resistance is located 124 levels and above which it could extend gains 124.50 (July 21 High) levels. To the downside immediate support might be located at 123.62 (Today’s Low) below that at 123.23 (July 15 Low) levels.
USD/JPY capped below 123.90
Currently, the USD/JPY pair trades -0.12% lower at 123.74, recovering from fresh session lows reached at 123.62. USD/JPY maintained the offered tone in Asia as markets continue to digest Tuesday’s hawkish comments from BOJ Kuroda which lifted the Japanese currency from fresh monthly lows against the greenback.
Kuroda told reporters as quoted by Reuters on Tuesday, "Right now, the inflation rate is close to zero." “The inflation rate should start to accelerate considerably in coming months." He further stressed that he didn't see a reason to expand the bank's QQE, as the inflation will gradually rise in the coming months.
The USD/JPY was seen below its six-week high as traders opted for locking earlier profits once the technical resistance was hit. US dollar index - a virtual measure of the greenback's power against its six major peers – stood muted at 97.47.
Markets look forward to today’s housing data from the US while Thursday JPY trade balance will be closely watched in absence of any other significant data releases due later this session.
USD/JPY Technical Levels
To the upside, the next resistance is located 124 levels and above which it could extend gains 124.50 (July 21 High) levels. To the downside immediate support might be located at 123.62 (Today’s Low) below that at 123.23 (July 15 Low) levels.