20 Jan 2015
USD/JPY opening in steady mode
FXStreet (Guatemala) - USD/JPY is starting out steady on the open of Tokyo, contained by strong resistance at 117.80 and psychological 118.00.
The theme around the pair comes with safe haven servicing in the Yen for traders and investors who are on the sidelines in the aftermath of the SNB event, general political tensions and global economic uncertainties, while the greenback is favoured for the diversification of cash flows post the surge in the CHF and the SNB's rate cut into deeper negative deposit rates and divergences between the BoJ and Fed.
This week, we await the BoJ decision and statement. While the markets are widely prepared for a no change to policy, the statement and press conference will be very closely monitored for mention of aspect relating to the price of oil, deflation and what outlook that the Bank are holding in respect of the exchange rate and such implication of, say, a stronger Yen might have on their endeavours.
Meanwhile, Karen Jones, chief analyst at Commerzbank sights the initial resistance as offered by the 55 day ma at 118.15. "Tougher resistance is the 120.09 short term downtrend and directly above the market lies the 122.58/123.40 major resistance, this is the location of the 14 year downtrend and the long term Fibonacci retracement."
The theme around the pair comes with safe haven servicing in the Yen for traders and investors who are on the sidelines in the aftermath of the SNB event, general political tensions and global economic uncertainties, while the greenback is favoured for the diversification of cash flows post the surge in the CHF and the SNB's rate cut into deeper negative deposit rates and divergences between the BoJ and Fed.
This week, we await the BoJ decision and statement. While the markets are widely prepared for a no change to policy, the statement and press conference will be very closely monitored for mention of aspect relating to the price of oil, deflation and what outlook that the Bank are holding in respect of the exchange rate and such implication of, say, a stronger Yen might have on their endeavours.
Meanwhile, Karen Jones, chief analyst at Commerzbank sights the initial resistance as offered by the 55 day ma at 118.15. "Tougher resistance is the 120.09 short term downtrend and directly above the market lies the 122.58/123.40 major resistance, this is the location of the 14 year downtrend and the long term Fibonacci retracement."