27 Aug 2015
USD/JPY struggles with 120 and bulls need 200 DMA
FXStreet (Guatemala) - USD/JPY is currently trading around the 120 handle with a high of 120.37 and a low of 119.87 so far on the bearish reversal.
USD/JPY has taken a bias to the downside yet again and the US stock market instigated drift over the start of the Asian session ran out of steam at aforementioned highs on a bullish sentiment from BoJ's Kuroda.
USD/JPY on Kuroda
Kuroda explained that Abenomics has fixed the excessive appreciation of the Yen, thus signalling the market that the Bank is comfortable with the price rising from here while adding that the 2% inflation target cane be attained and even inflation expectations need to be increased. "QQE has been having its intended effects…there are no plans for additional easing."
USD/JPY subject to US stock markets
Meanwhile, US stocks had an impressive day, fighting back amid Dudley, whose comments matter as Vice Chair to Yellen at the Federal Reserve, as he suggests that September is less compelling for lift-off, which should relieve the corporate sector in the US economy while a very strong Durable Goods number was adding positive sentiment to Corporate America which will, in-turn, be enjoying a weaker currency over this current spell in the so-called times of currency wars. However, currently, the bid has met its match as we progress through the Tokyo open, despite equities opening higher and the Yen is taking back control pressuring 120.00 at time of writing having already been as low as 119.90.
USD/JPY in wide technical range
Technically, we are in a wide range while the key resistance point will come as the 100 SMA at 120.60, as noted by Valeria Bednarik, chief analyst at FXStreet.
We also have the 120.70 200 DMA on the daily sticks which has been a string resistance level throughout March-May and the break of mid-May's business allowed the unit to rally to the highs in the 125.70's. It acted at as double bottom support in July also. Until this level is broken with closes the downside remains compelling with 118.00/30 a key support.
USD/JPY has taken a bias to the downside yet again and the US stock market instigated drift over the start of the Asian session ran out of steam at aforementioned highs on a bullish sentiment from BoJ's Kuroda.
USD/JPY on Kuroda
Kuroda explained that Abenomics has fixed the excessive appreciation of the Yen, thus signalling the market that the Bank is comfortable with the price rising from here while adding that the 2% inflation target cane be attained and even inflation expectations need to be increased. "QQE has been having its intended effects…there are no plans for additional easing."
USD/JPY subject to US stock markets
Meanwhile, US stocks had an impressive day, fighting back amid Dudley, whose comments matter as Vice Chair to Yellen at the Federal Reserve, as he suggests that September is less compelling for lift-off, which should relieve the corporate sector in the US economy while a very strong Durable Goods number was adding positive sentiment to Corporate America which will, in-turn, be enjoying a weaker currency over this current spell in the so-called times of currency wars. However, currently, the bid has met its match as we progress through the Tokyo open, despite equities opening higher and the Yen is taking back control pressuring 120.00 at time of writing having already been as low as 119.90.
USD/JPY in wide technical range
Technically, we are in a wide range while the key resistance point will come as the 100 SMA at 120.60, as noted by Valeria Bednarik, chief analyst at FXStreet.
We also have the 120.70 200 DMA on the daily sticks which has been a string resistance level throughout March-May and the break of mid-May's business allowed the unit to rally to the highs in the 125.70's. It acted at as double bottom support in July also. Until this level is broken with closes the downside remains compelling with 118.00/30 a key support.