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USD/JPY keeps range around 121.70 on BOJ Kuroda

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 6, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The bid tone on the JPY remains intact in the mid-Asian session, with USD/JPY paying little attention to the comments from BOJ Governor Kuroda.

    USD/JPY capped below hourly 20-SMA at 121.75

    Currently, the USD/JPY pair trades -0.06% lower at 121.68, having faced rejection at 122 handle in the previous session. The USD/JPY pair retreated from fresh multi-month peaks and now consolidates before a next leg higher, as the latest comments from Kuroda seems to have little impact on the Japanese currency.

    BOJ Governor Governor Kuroda while speaking at a meeting held by the Naigai Josei Chosa Kai (Research Institute of Japan) in Tokyo, sounded upbeat on the Japanese economic outlook while acknowledging that slowdown in emerging markets are already affecting Japanese exports. He also reiterated the BOJ 2% price target will be easily met with the current easing policy.

    Looking ahead, the focus now shifts towards the main highlight of this week, the US non-farm payrolls data, which is likely to set fresh direction for the USD and could hint at a Dec Fed rate lift-off.

    USD/JPY Technical levels to watch

    The prices hover near hourly 20-SMA and find the immediate resistance at 122 handle and from there to 122.36 (daily R2). A breach of the last, the prices would head towards 122.50 (psychological levels). To the downside, the immediate support in sight at 121.43/35 (200-DMA/ Nov 5 Low), below which 121.06/121 (10-DMA/ round number) would be tested. A break below the last, 120.60/57 (20-DMA/ Nov 3 low) comes into the picture.
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