7 Aug 2015
USD/JPY: Awaiting BoJ within bullish territory; eyes on June highs
FXStreet (Guatemala) - USD/JPY is currently trading at 124.73 with a high of 124.76 and a low of 124.66.
Asian markets are opening lower in Tokyo following suit of a non performance on Wall Street while USD/JPY has been consolidating the upside of yesterday's bid tone.
We are awaiting the BoJ today and Nonfarm Payrolls more so from the US.
The BoJ this is expected to remain on hold carrying a bullish assessment of the economy. The Central Bank will continue to be data-dependent with an easing bias. The key focus will remain with Nonfarm Payrolls. Expectations are for 225k.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
USD/JPY technically bullish
Technically the major remains in the hands of the bulls and the June highs are in focus at 125.86. Analysts at Bank of America Merrill Lynch explained that the near-term risks in the domestic environment include political instability, which could exert marginal upward pressure on JPY.
"Externally, the US dollar is likely to strengthen further on the anticipated Fed rate hike. But it could also temporarily put downward pressure on the US and other stock markets, which in turn could be negative on the cross-yen pairs, and this may limit the near-term scope of increase in the USD/JPY."
"Over the medium term, though, we still expect policy differences to drive the market. Within this framework, although the BoJ is evidently much easier than the Fed or the BoE, which are clearly moving toward a rate hike, the BoJ’s easing bias is not strong as the RBA, ECB, or RBNZ, in our view. Accordingly, as reflected in forex price moves in July (Chart 1), we expect upward pressure on the USD/JPY."
Valeria Bednarik, chief analyst at FXStreet explained that ,"In the 4 hours chart, the price is well above its moving averages, the Momentum indicator holds above the 100 level, and the RSI indicator turned slightly lower from overbought readings, now around 60, supporting a limited slide as seen in the shorter term."
Asian markets are opening lower in Tokyo following suit of a non performance on Wall Street while USD/JPY has been consolidating the upside of yesterday's bid tone.
We are awaiting the BoJ today and Nonfarm Payrolls more so from the US.
The BoJ this is expected to remain on hold carrying a bullish assessment of the economy. The Central Bank will continue to be data-dependent with an easing bias. The key focus will remain with Nonfarm Payrolls. Expectations are for 225k.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
USD/JPY technically bullish
Technically the major remains in the hands of the bulls and the June highs are in focus at 125.86. Analysts at Bank of America Merrill Lynch explained that the near-term risks in the domestic environment include political instability, which could exert marginal upward pressure on JPY.
"Externally, the US dollar is likely to strengthen further on the anticipated Fed rate hike. But it could also temporarily put downward pressure on the US and other stock markets, which in turn could be negative on the cross-yen pairs, and this may limit the near-term scope of increase in the USD/JPY."
"Over the medium term, though, we still expect policy differences to drive the market. Within this framework, although the BoJ is evidently much easier than the Fed or the BoE, which are clearly moving toward a rate hike, the BoJ’s easing bias is not strong as the RBA, ECB, or RBNZ, in our view. Accordingly, as reflected in forex price moves in July (Chart 1), we expect upward pressure on the USD/JPY."
Valeria Bednarik, chief analyst at FXStreet explained that ,"In the 4 hours chart, the price is well above its moving averages, the Momentum indicator holds above the 100 level, and the RSI indicator turned slightly lower from overbought readings, now around 60, supporting a limited slide as seen in the shorter term."