21 Jan 2015
USD/JPY recovers back to test 117.80 resistance
FXStreet (Guatemala) - USD/JPY is currently trading at 117.73 with a high of 118.87 and a low of 117.18 and is 0.81% down on the day.
has made a minor bounce off the lows down at 117.20 and is recovering to test the 117.80 resistance. The volatility comes post the meeting overnight where the BoJ left monetary policy unchanged while maintaining the targeted annual rise in the monetary base at JPY80 tn. Due to the Central Bank also cutting its inflation forecast, leaving some investors disappointed, the JPY climbed over a cent lower and away from the recent high just under 119.
Meanwhile, the markets remain fragile, and rumours of the ECB commencing sovereign QE as early as March has lifter the greenback today, aiding the pair in a recovery. "Drivers for gains are coalescing around expectations of a big ECB QE programme tomorrow that will be broadly USD-positive on the one hand and helpful for risk sentiment on the other," explained analysts at TD Securities, adding, "But that may not matter too much for now; providing risk sentiment stays positive, USDJPY should push a little higher. We stay positive while USD/JPY remains above 117.25."
has made a minor bounce off the lows down at 117.20 and is recovering to test the 117.80 resistance. The volatility comes post the meeting overnight where the BoJ left monetary policy unchanged while maintaining the targeted annual rise in the monetary base at JPY80 tn. Due to the Central Bank also cutting its inflation forecast, leaving some investors disappointed, the JPY climbed over a cent lower and away from the recent high just under 119.
Meanwhile, the markets remain fragile, and rumours of the ECB commencing sovereign QE as early as March has lifter the greenback today, aiding the pair in a recovery. "Drivers for gains are coalescing around expectations of a big ECB QE programme tomorrow that will be broadly USD-positive on the one hand and helpful for risk sentiment on the other," explained analysts at TD Securities, adding, "But that may not matter too much for now; providing risk sentiment stays positive, USDJPY should push a little higher. We stay positive while USD/JPY remains above 117.25."