USD/JPY finds fresh bids near 112 on BOJ’s Kiuchi

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The US dollar tries hard to regain control against its Japanese counterpart, now keeping USD/JPY supported above 112 handle over the last hours.

    USD/JPY capped below 5-DMA at 112.34

    The dollar-yen pair found fresh bids just ahead of 112 handle following BOJ’s lone dissenter Kiuchi’s comments, which triggers some selling in the Japanese comments. BOJ’s Kiuchi noted the side-effects of massive JGB buying and also added that its difficult to achieve the 2% price target with monetary policy alone. At the time of writing, USD/JPY trades -0.04% lower at 112.15, recovering from session lows reached at 111.90 pre-Tokyo open.

    Moreover, improving sentiment on the Japanese stocks remain supportive and hence, restrict the downside in the major. Japan’s Nikkei gains 0.80% to trade above 16k mark. Markets now await the crucial US durable goods and Japan’s CPI figures before the release of the prelim GDP report from the US, for fresh cues on the US economic outlook.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 112.34/43 (5-DMA/ 1h 100-SMA). A break above the last, the major could test 113.03 (10-DMA). While to the downside, the immediate support is seen at 111.82/80 (1h 20-SMA/ daily pivot) and below that at 111.05/110.98 (Feb 24 & 11 Low).
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