USD/JPY testing support at 120.60/65, Tokyo sellers step in

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 24, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Bali) - USD/JPY has accelerated to the downside during the morning trade in Tokyo, moving from top edge just below 121.00 allthe way to currently hit a new low for the session at 120.68.

    BOJ minutes contains no surprises

    BoJ minutes from the Nov 18 and 19 meeting were published at 23.50GMT with the Central Bank noting that most members shared the view about the underlying inflation trend improving, adding that most members shared view underlying trend in inflation had been improving steadily. Nonetheless, many members also agreed that the BOJ should make policy adjustments without hesitation if underlying trend in inflation changed.

    Additional headlines can be read here

    USD/JPY technicals

    Valeria Bednarik, Chief Analyst at FXStreet, said: "The pair is trading a few pips above a daily ascendant trend line coming from 116.13 the low set past August 24th, currently at 120.65, the immediate support, and the daily chart shows that the price is below its 100 DMA, whilst the technical indicators have extended their declines below their mid-lines."

    "For the short term, the 1 hour chart presents a neutral-to-bearish stance, as the technical indicators have turned slightly lower below their mid-lines, whilst the price develops below its 100 and 200 SMAs. In the 4 hours chart the technical indicators are resuming their declines below their mid-lines as the price remains well below their moving averages, in line with the shorter term outlook", Valeria added.
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