15 Sep 2015
USD/JPY awaits BoJ while pressing on with a bullish bias
FXStreet (Guatemala) - USD/JPY has continued on the bid until meeting resistance at the 120.40 mark, but is well placed supported along the 20 SMA on the hourly and in extension of the minor recovery from down at 119.80.
The BoJ is set to meet this evening and the consensus is for a no change. However, there could be a greater easing tone from the Central Bank and Kuroda is set to make a press conference after the release which could be key in the price of USD/JPY today.
However, analysts at Brown Brothers Harriman explained that BOJ Governor Kuroda is still sounding relatively upbeat. "He seems to be playing down the official core measure of CPI (which excludes fresh food), and seems to be placing more emphasis on the measure that excludes food and energy. After spending the last few months on his controversial political agenda, Abe appears to returning to economic issues, and fiscal support for the economy, which could include a supplemental budget as early as next month. Pending fiscal stimulus also argues against more monetary easing now. "
USD/JPY neutral
Technically, USDJPY remains in a short-term neutral position. Eric Theoret, CFA, CMT Currency Strategist at Scotiabank explained> that momentum indicators are close to neutral and bearish trend indicators are softening. "Recent movement has been limited between the short-term MA's with support at the 9 day MA (120.06) and resistance at the 21 day MA (120.91). The 200 day MA (120.82) has proven to be an important near term level of resistance on a closing basis."
The BoJ is set to meet this evening and the consensus is for a no change. However, there could be a greater easing tone from the Central Bank and Kuroda is set to make a press conference after the release which could be key in the price of USD/JPY today.
However, analysts at Brown Brothers Harriman explained that BOJ Governor Kuroda is still sounding relatively upbeat. "He seems to be playing down the official core measure of CPI (which excludes fresh food), and seems to be placing more emphasis on the measure that excludes food and energy. After spending the last few months on his controversial political agenda, Abe appears to returning to economic issues, and fiscal support for the economy, which could include a supplemental budget as early as next month. Pending fiscal stimulus also argues against more monetary easing now. "
USD/JPY neutral
Technically, USDJPY remains in a short-term neutral position. Eric Theoret, CFA, CMT Currency Strategist at Scotiabank explained> that momentum indicators are close to neutral and bearish trend indicators are softening. "Recent movement has been limited between the short-term MA's with support at the 9 day MA (120.06) and resistance at the 21 day MA (120.91). The 200 day MA (120.82) has proven to be an important near term level of resistance on a closing basis."