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USD/JPY recovery a slow burner on fragile 114 handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    USD/JPY is currently struggling to continue making advances in the recovery of the 113.36 lows at the end of yesterday's business. The risk sentiment improved a little in London with a rally from the downside of the recovery attempts at 113.73 to a high of 114.31.

    FOMC minutes mixed

    The FOMC minutes were the main event overnight, but they failed to offer a firm outlook one way or the other, but the fact that there is so much uncertainty does not bode well for the bulls, who, however, enjoyed what positive headlines the minutes had to offer and the same beat of the same drum that inflation target will be reached in the medium term warranting interest rate hikes.

    Japan's poor exports

    For Japan, we had poor data in the trade balance yet again with a drop in exports that were missing expectations and while the Yen strengthens, more of the same could be expected, especially as oil stays lower for longer. On that note, there was a rally in the black gold on the API build up as well as the Iranian headlines in the US shift.

    USD/JPY levels


    Technically, Valeria Bednarik, chief analyst at FXStreet explained, In the same chart, the technical indicators remain above their mid-lines, but lack directional strength, while in the 4 hours chart, the technical indicators turned south after a limited bounce from their mid-lines, as the price remains well below its moving averages, favoring additional declines on a break below the mentioned 113.50 region."
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