USD/JPY heading for 107.00 as European markets close in
Share With
Like With

USD/JPY has steadied in Tokyo trading but still on the low side, currently testing below 107.10 with European markets approaching.

The pair declined in early Asia trading following a surprise cut to Bank of Japan (BOJ) asset purchases, with the BOJ reducing the amount they spend on long-dated government bonds to 70 billion Yen from 80 billion. While the move was explained as a means of managing the yield curve and price control, the markets reacted to the taper-esque behaviour as if it were a taper anyway, with the Yen jumping higher and equities declining.

The move was short-lived as market participants came to terms with the spending cut quickly, but the Yen is keeping elevated for now as markets prepare to swing following high-impact data from both the European and the US market sessions, on the back of Fed chair Powell’s bullish first showing in his Congressional testimony yesterday.

USD/JPY Technicals

Despite the resurgence of Dollar buying, the Yen pair remains deeply in bearish territory, far below the 200-day SMA. H4 candles show a constraining of highs and lows, and a break of near-term support or resistance could produce a decided move. Support is currently holding at 106.37 and 105.55, with resistance at 107.67 and 107.90.

learnforextrading.in
FOREX TRADING / FOREX TRAINING / FOREX ACCOUNT OPENING Mail : profits@learnforextrading.in Mobile : 0091 9841234504 and 0091 8610619487 Landline : +91 – 044 – 22241214 Whatsup: +91-9841234504 and +91-8610619487 Instagram: https://www.instagram.com/learnforextrading.in/ Facebook : https://www.fb.me/learnforextrading.in Twitter: https://twitter.com/ForexProfits100 Youtube : https://www.youtube.com/channel/UCMI9dYtrrAopim0ximpxYrA Website : www.learnforextrading.in | www.forexnext.com | www.Diyaforex.com | www.sunpips.com Broker : Open Account

Leave a Reply

Your email address will not be published. Required fields are marked *