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USD/JPY: highly bid on ECB and Wall Street

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - USD/JPY is currently trading at on the bid towards key resistance with a high of 120.78 so far and a low of 119.60.

    USD/JPY has been better bid as stocks rallied on Wall Street and overnight in the European sessions as the ECB came across very forthright and dovish with it opening-up the door for further easing as soon as December on concerns of global growth and headwinds from China in the main and EM's. The Yen was shunned and the dollar soared. The greenback was bid in its own right with positive data releases at the same time in the US shift.

    Draghi's press conference left the door open for expanding the stimulus program beyond 2016 while he is concerned about headwinds from China and emerging markets who are compromising much of the domestic growth in the EZ while their policy is having its intended effect otherwise, but the economy may need more to boost euro-zone growth and bring inflation closer to 2 %.

    What is QE?

    The unemployment claims rose below the 265,000 expected by 3,000 to 259,000 last week and existing home sales also beat expectations to an annual rate of 5.55m for September.

    USD/JPY levels

    Technically, we are now up to test the 200 DMA that is a very key level on the daily charts and in general, signalling that we could be headed for a renewed uptrend is the major could manage daily closes above this psychological barrier that has not been breached since mid August business.

    The support comes at the 20 DMA at 119.88 below ahead of 119.10/15 the 2012-2015 uptrend at 116.87. Key upside resistance now will be through 120.95 and the 200 DMA aiming for 122.00.
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