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USD/JPY testing highs near 123.30 on BOJ’s Kuroda

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The Japanese yen ran through fresh offers in recent dealings, now pushing USD/JPY to fresh session highs beyond all major MA’s on hourly charts.

    USD/JPY supported by higher Asian equities

    Currently, the USD/JPY pair trades 0.15% higher at 123.30, testing session highs reached at 123.33 some minutes ago. The major caught renewed bid tone after the yen fell further into losses following BOJ Governor Kuroda’s speech.

    While speaking at Paris Europlace Financial Forum in Tokyo, Kuroda talked up the QQE program, noting that the QQE effects on the financial sector is becoming more evident and that the stimulus effort doesn’t pose significant financial risks.

    Moreover, the upside in the USD/JPY pair can be also attributed to the strengthening US dollar across the board on persisting risk-on trades supported by rebounding Asian equities. Nikkei rallies 1.33%, while Australia’s S&P/ASX gains 0.15%.

    Looking ahead, markets will digest the latest comments from Kuroda while continuing to monitor the sentiment on the global equities. While no major economic data is lined up for release later today.

    USD/JPY Technical levels to watch

    The prices tick higher in Asia and find the immediate resistance at 123.38 (Dec 4 High). A break above the last, the major could test 123.50/58 (Dec 3 High/ round number). On the flip side, the immediate support placed at 123.06/123 (1h 100-SMA/ round number) below which 122.88 (1h 200-SMA) would be tested.
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