17 Mar 2016
USD/JPY makes fresh lows, FOMC & Nikkei 225 weigh
The main theme in Asia continues to be USD weakness, which coupled with a sell-off in the Nikkei 225 during afternoon trade, now up just 0.63%, has seen the Yen strengthen further, breaking through the mid-round number at 112.50, setting its sights now (broken as lines being typed) towards the FOMC-led low at 112.33.
BOJ inaction, dovish FOMC double-whammy for sellers
The combination of no additional policy action by the Bank of Japan last Tuesday - despite expectations for further negative rates remain solid -, together with a dovish FOMC outcome on Wednesday, have been two powerful trigger to see the pair abandon the top-edge of its daily range at 114.00 and now be decisively headed towards the lower end of mentioned range circa 112.00.
USD/JPY key levels
Technically, should bears manage to take out the 112.33 Wed's low, the 112.00 will come into focus, with a break lower setting the stage for a potential retest of this year's low in the 111.00 vicinity. On the upside, there are no prospects of bulls gaining the upper hand unless 113.00 can be re-taken; only then, the scenario may start to paint a more constructive picture.
BOJ inaction, dovish FOMC double-whammy for sellers
The combination of no additional policy action by the Bank of Japan last Tuesday - despite expectations for further negative rates remain solid -, together with a dovish FOMC outcome on Wednesday, have been two powerful trigger to see the pair abandon the top-edge of its daily range at 114.00 and now be decisively headed towards the lower end of mentioned range circa 112.00.
USD/JPY key levels
Technically, should bears manage to take out the 112.33 Wed's low, the 112.00 will come into focus, with a break lower setting the stage for a potential retest of this year's low in the 111.00 vicinity. On the upside, there are no prospects of bulls gaining the upper hand unless 113.00 can be re-taken; only then, the scenario may start to paint a more constructive picture.