18 Feb 2014
USD/JPY is celebrating BOJ decision with new highs at 102.43
FXStreet (Moscow) - USD/JPY is enjoying a vigorous bullish movement. The pair paused at the resistance area of 102.40-50, but the upside dynamic is still strong
USD/JPY and Bank of Japan
USD/JPY grew yesterday as poor Japanese GDP numbers darkened the market sentiments and disappointed investors sold Yen during European and American hours. The pair did not manage to go past the resistance of 102.00, protected by selling interest and retraced to 101.93. here">Bank of Japan published its monetary policy decision. It seems that now we have that rare case when it is not completely a non-event as the central bank extended its stimulating program, but kept its economic and inflation assessment basically unchanged. USD/JPY knee-jerked to 101.76 right after the news hit the wires, but the reaction was short-loved as the pair returned to pre-announcement levels, smashed resistance of 102.00 and went on higher. BOJ kept its word and took measure to protect the economic recovery. This decision may become a catalyst for further JPY weakening across the board. Now all eyes are at BOJ press conference. How will the BOJ comment upon its stimulus? Is it due to weak GDP data? Any hints to that effect will enhance pressure on JPY. Keep an eye at 102.50 and 102.80 on the upside and 102.00 on the downside.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 101.77, with support below at 101.55, 101.15 and 100.93, with resistance above at 102.17, 102.39, and 102.79. Hourly Moving Averages are mixed, with the 200SMA at 102.05 and the daily 20EMA at 102.48. Hourly RSI is neutral at 54.
USD/JPY and Bank of Japan
USD/JPY grew yesterday as poor Japanese GDP numbers darkened the market sentiments and disappointed investors sold Yen during European and American hours. The pair did not manage to go past the resistance of 102.00, protected by selling interest and retraced to 101.93. here">Bank of Japan published its monetary policy decision. It seems that now we have that rare case when it is not completely a non-event as the central bank extended its stimulating program, but kept its economic and inflation assessment basically unchanged. USD/JPY knee-jerked to 101.76 right after the news hit the wires, but the reaction was short-loved as the pair returned to pre-announcement levels, smashed resistance of 102.00 and went on higher. BOJ kept its word and took measure to protect the economic recovery. This decision may become a catalyst for further JPY weakening across the board. Now all eyes are at BOJ press conference. How will the BOJ comment upon its stimulus? Is it due to weak GDP data? Any hints to that effect will enhance pressure on JPY. Keep an eye at 102.50 and 102.80 on the upside and 102.00 on the downside.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 101.77, with support below at 101.55, 101.15 and 100.93, with resistance above at 102.17, 102.39, and 102.79. Hourly Moving Averages are mixed, with the 200SMA at 102.05 and the daily 20EMA at 102.48. Hourly RSI is neutral at 54.