5 Sep 2013
USD/JPY setting stage for upside break, 99.80/100.00 critical
FXstreet.com (Barcelona) - USD/JPY continues subject to upward pressure, with dip buying interest remaining firm all week long, as traders gear up for what could be an important breakout through 99.80/100.00.
Topside break looming?
The topside pressure for an eventual breakout shows characteristics that suggest it may be a valid one, with the angle of each topside rejection getting more acute, a lower high pattern being built intraday - see H1 chart - which communicates what might be understood as a pre-breakout scenario.
BoJ expected to keep policy unchanged
Financial Analysts appear to share the same line of thinking for today's meeting, noting the BOJ is expected to leave policy unchanged at this week’s meeting, with the statement release due between 3 and 5 GMT later today.
According to Yujiro Goto, FX Strategist at Nomura: "While near-term BOJ meetings are unlikely to affect the FX market, the Bank’s current stance to keep quietly purchasing JGBs and other risky assets, amid clear signs of an economic recovery and inflation, should sustain gradual JPY weakness."
Topside break looming?
The topside pressure for an eventual breakout shows characteristics that suggest it may be a valid one, with the angle of each topside rejection getting more acute, a lower high pattern being built intraday - see H1 chart - which communicates what might be understood as a pre-breakout scenario.
BoJ expected to keep policy unchanged
Financial Analysts appear to share the same line of thinking for today's meeting, noting the BOJ is expected to leave policy unchanged at this week’s meeting, with the statement release due between 3 and 5 GMT later today.
According to Yujiro Goto, FX Strategist at Nomura: "While near-term BOJ meetings are unlikely to affect the FX market, the Bank’s current stance to keep quietly purchasing JGBs and other risky assets, amid clear signs of an economic recovery and inflation, should sustain gradual JPY weakness."