23 Feb 2015
USD/JPY wavers above 119, awaits fresh incentives
FXStreet (Mumbai) - USD/JPY extended its choppy trend from Tokyo open; steadying above 119 levels in the mid-Asian session as a minor recovery in the US dollar keeps the pair underpinned while BOJ minutes did not have significant impact on the pair.
USD/JPY supported on stronger US dollar
Currently, the USD/JPY trades flat at 119.08 levels, having posted day’s lows at 119 and day’s high at 119.16. The pair is back to trading in a narrow range as traders continue to digest BoJ minutes which revealed that some of the board members seem divided on the feasibility of continuing with the government bond buying.
Minutes revealed, "Some members - noting that interest rates had recently been declining further under QQE - said that, when examining risks, it was necessary to closely monitor factors such as the effects this would have on financial institutions' business conditions and the risk of a buildup of financial imbalances,"
"A few of these members noted that the feasibility of continuing asset purchases into the future warranted attention, even though it seemed technically possible to continue such purchases for some time."
Meanwhile, the pair looks for fresh incentives ahead of Tuesday’s testimony from Federal Reserve (Fed) Chair Janet Yellen which may provide some hints on the interest rate hike timing.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.20 levels and above which it could extend gains 119.44 levels. To the downside immediate support might be located at 118.91 (10-DMA) levels, below that at 118.60 (50-DMA) levels.
USD/JPY supported on stronger US dollar
Currently, the USD/JPY trades flat at 119.08 levels, having posted day’s lows at 119 and day’s high at 119.16. The pair is back to trading in a narrow range as traders continue to digest BoJ minutes which revealed that some of the board members seem divided on the feasibility of continuing with the government bond buying.
Minutes revealed, "Some members - noting that interest rates had recently been declining further under QQE - said that, when examining risks, it was necessary to closely monitor factors such as the effects this would have on financial institutions' business conditions and the risk of a buildup of financial imbalances,"
"A few of these members noted that the feasibility of continuing asset purchases into the future warranted attention, even though it seemed technically possible to continue such purchases for some time."
Meanwhile, the pair looks for fresh incentives ahead of Tuesday’s testimony from Federal Reserve (Fed) Chair Janet Yellen which may provide some hints on the interest rate hike timing.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.20 levels and above which it could extend gains 119.44 levels. To the downside immediate support might be located at 118.91 (10-DMA) levels, below that at 118.60 (50-DMA) levels.