USD/JPY: lacking direction ahead of BoJ

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    USD/JPY remain sin a general consolidation of the downtrend and is directionless without fresh impetus. However, this week is a big week for the major with both the FOMC and BoJ.

    In respect of the BoJ, markets are not expecting any action from the Central Bank, but any surprises would be enough to trigger a good move. However, we have already had Hamada, who is an adviser for Japan's PM, Abe, come out and tell markets that the BoJ is unlikely to ease now. His comments were released during London trade and most notably, it appears that the recent negative rate action by the BoJ didn't have the required effect as the BoJ wants to see the Yen weaken further.

    BOJ preview: March pause, April easing - RBS

    In respect of the FOMC, June is a more likely month that the Fed might increase interest rates again, while some analyst predict from two to three more rate hikes this year vs those who are skeptical in respect of the US and global economy and fear that the Fed will not be able to hike again at all for the rest of this year.

    FOMC preview: Rates unchanged, door open for June - Danske

    USD/JPY levels

    Valeria Bednarik
    , chief analyst at FXStreet explained, "Technically, the short-term picture presents a limited positive tone, as in the 1 hour chart, the price held above its moving averages, whilst the technical indicators head slightly higher above their mid-lines. In the 4 hours chart, the technical stance is neutral, with the technical indicators barely bouncing from their mid-lines, but lacking enough strength to confirm a new leg higher. "
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