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27 Apr 2016
USD/JPY: a tentative start ahead of BoJ Thursday
USD/JPY is slightly offered through 111.20 marking a low of 111.16, despite a positive start in Asian equities following the modestly higher close on Wall Street with the energy sector leading the way on the back of oil recovering to YTD highs of $44.44bbls WTI.
Overnight, USD/JPY was offered to below 110.70, before it then recovered on the back of chatter around what the outcome of the Bank of Japan might be on Thursday given the dovish outlook from officials of late. "Also supporting USD/JPY, the US 10yr treasury yield rose from 1.89% to 1.94%, brushing off the disappointing US durable goods data. The 2yr rose from 0.84% to 0.87%. The next Fed hike is fully priced for Dec 2017, with June given around a 20% chance," noted analysts at Westpac.
We now await the Fed and you can read a preview written by chief analyst at FXStreet Valeria Bednarik.
USD/JPY levels
We are getting support on the 30 mins stick from the 100 sma at 111.14 and should that give way, the price will be moving in on S1 at 110.73 before earlier lows at 110.66.
Any moves to the upside could find string resistance at the 55 day moving average at 111.95 while the downside could equally find strong support on the intraday Elliott wave counts at 110.30/109.80, as explained by Karen Jones, chief analyst at Commerzbank who added, " We should then see further recovery towards the mid-February to March highs at 113.80/114.87."
GPIF head not planning changes in allocation - WSJ interview
Overnight, USD/JPY was offered to below 110.70, before it then recovered on the back of chatter around what the outcome of the Bank of Japan might be on Thursday given the dovish outlook from officials of late. "Also supporting USD/JPY, the US 10yr treasury yield rose from 1.89% to 1.94%, brushing off the disappointing US durable goods data. The 2yr rose from 0.84% to 0.87%. The next Fed hike is fully priced for Dec 2017, with June given around a 20% chance," noted analysts at Westpac.
We now await the Fed and you can read a preview written by chief analyst at FXStreet Valeria Bednarik.
USD/JPY levels
We are getting support on the 30 mins stick from the 100 sma at 111.14 and should that give way, the price will be moving in on S1 at 110.73 before earlier lows at 110.66.
Any moves to the upside could find string resistance at the 55 day moving average at 111.95 while the downside could equally find strong support on the intraday Elliott wave counts at 110.30/109.80, as explained by Karen Jones, chief analyst at Commerzbank who added, " We should then see further recovery towards the mid-February to March highs at 113.80/114.87."
GPIF head not planning changes in allocation - WSJ interview