USD/JPY bids revived on BoJ easing prospects

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 16, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Just when we thought we would have to await events in the day ahead to get any action from USD/JPY in the FOMC, the Yen has been sold-off in the Tokyo opening hour on comments from Japanese authorities in respect to further easing on the cards.

    For the day ahead, Asia is awaiting the FOMC. For live coverage of the key event, you can tune in here with FXStreet.

    USD/JPY is making a reversal after yesterday's sell-off post the BoJ announcements and holding current policy in place as is. The BoJ left rates at -0.1% along with the annual purchases of financial assets at ¥80tn a year. However, in Kuroda's presser, he said that more asset purchases and adjustments to its negative rate remain on the table and today in parliament, he has announced that theoretically, there is room to cut even further to -0.5% and that the risks are heightening in the global market instability while a slowdown in emerging economies could hurt business sentiment.

    USD/JPY levels

    USD/JPY is headed towards breaking the 200 sma on the hourly sticks at 113.37 on this 30 pip move from the 20 sma down at 113.07.

    However, the broader picture is neutral within the broad 112.00/114.55 range and price action is likely to remain choppy within that range as the price is basing on the longer term sticks from recent lows of 110.97. A key target through the 200 sma on the 1hr sticks is the pivot of 113.76 and R1 at 114.06.
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