6 Aug 2015
USD/JPY: rally stalling before key 125 level
FXStreet (Guatemala) - USD/JPY is currently trading at 124.80 with a high of 124.89 and a low of 124.72.
USD/JPY rallied overnight on the ISM Non Manufacturing printing its highest since 2005 and general Fed hike vibes. The stock market was relieved in the back of Powell and Tokyo has followed suit of the bulls in the open. USD/JPY has since been a stable play at the upper end of the move with 125 in the bulls sights ahead of the BoJ tomorrow.
The BoJ this week will likely stay on hold and maintain an upbeat assessment of the economy and will remain data-dependent with an easing bias, keeping JGB yields low for the rest of the year, while Kuroda was explaining earlier in the week that inflation will not pick up until the latter half of this fiscal year. The key event will come at the end of the week with the Nonfarm Payrolls and markets are looking for 225k or at least above the psychological 200k mark for a positive indication for hiking rate in September.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
USD/JPY bulls looking for June highs
Technically, on a drive through the psychological 125 level, the June high comes as next level at 125.86. Karen Jones, chief analyst at Commerzbank explained they remain positively biased and would continue to buy the dips and these will ideally hold over the 123.01 27th July low. "Failure here would allow further slippage towards the base of the daily cloud, which comes in circa 122.18."
USD/JPY rallied overnight on the ISM Non Manufacturing printing its highest since 2005 and general Fed hike vibes. The stock market was relieved in the back of Powell and Tokyo has followed suit of the bulls in the open. USD/JPY has since been a stable play at the upper end of the move with 125 in the bulls sights ahead of the BoJ tomorrow.
The BoJ this week will likely stay on hold and maintain an upbeat assessment of the economy and will remain data-dependent with an easing bias, keeping JGB yields low for the rest of the year, while Kuroda was explaining earlier in the week that inflation will not pick up until the latter half of this fiscal year. The key event will come at the end of the week with the Nonfarm Payrolls and markets are looking for 225k or at least above the psychological 200k mark for a positive indication for hiking rate in September.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
USD/JPY bulls looking for June highs
Technically, on a drive through the psychological 125 level, the June high comes as next level at 125.86. Karen Jones, chief analyst at Commerzbank explained they remain positively biased and would continue to buy the dips and these will ideally hold over the 123.01 27th July low. "Failure here would allow further slippage towards the base of the daily cloud, which comes in circa 122.18."