USD/JPY found bids around 10-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The bid tone around USD/JPY pair strengthened near 10-DMA level of 113.50 as US stocks recovered early losses, helping the spot trim losses to trade around 113.75 levels.

    Focus on BOJ rate decision

    US stocks were down 0.30% in early trading, however, buying interest spiked, thereby keeping Yen demand under control. The economic calendar in the US is empty; hence the spot remains at the mercy of the overall market sentiment ahead of the Bank of Japan rate decision.

    Markets do not expect BOJ to move rates, but traders would keep an eye on how bank’s view negative rate strategy, given Jan’s move failed to weaken Yen and prop up equity markets.

    USD/JPY Technical Levels

    The immediate hurdle is seen at 114.00 (psychological level + daily high), above which the spot could test supply around 114.48 (23.6% of 125.86-110.97). On the other hand, a break below 113.32 (5-DMA) would open doors for a slide to 112.22 (Mar 9 low).
    For more information, read our latest forex news.

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