9 Apr 2014
USD/JPY stands in the doorway to 102.00 hesitating
FXStreet (Moscow) - USD/JPY moved back above 102.00, posting 102.07 session high from 101.82 at the open, but not able to move higher retraced back 101.95 area at the moment.
Just a reduction
The BOJ inaction triggered a broad sell-off of the USD which spilled off to other currency pairs. The market has long been waiting for more stimulus program from the central bank of Japan, and priced in this event several times. First, it expected the regulator to act before the consumption tax hike in order to prevent negative effects on the economy. Now, the market awaited the expansion of the QE right after the hike, but Kuroda disappointed saying the additional easing was not required for now. Thus, the recent sell-off was a result of longs reduction, and corrective rebound may have a limited nature with 102.16 resistance level in store.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.16, with support below at 101.19, 100.57 and 99.60 with resistance above at 102.78, 103.76, and 104.37. Hourly Moving Averages are largely bearish, with the 200SMA at 103.17 and the daily 20EMA at 102.73. Hourly RSI is bearish at 31.
Just a reduction
The BOJ inaction triggered a broad sell-off of the USD which spilled off to other currency pairs. The market has long been waiting for more stimulus program from the central bank of Japan, and priced in this event several times. First, it expected the regulator to act before the consumption tax hike in order to prevent negative effects on the economy. Now, the market awaited the expansion of the QE right after the hike, but Kuroda disappointed saying the additional easing was not required for now. Thus, the recent sell-off was a result of longs reduction, and corrective rebound may have a limited nature with 102.16 resistance level in store.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.16, with support below at 101.19, 100.57 and 99.60 with resistance above at 102.78, 103.76, and 104.37. Hourly Moving Averages are largely bearish, with the 200SMA at 103.17 and the daily 20EMA at 102.73. Hourly RSI is bearish at 31.