4 Aug 2015
USD/JPY rises to tough resistance on 124 handle
FXStreet (Guatemala) - USD/JPY is currently trading at 124.33 with a high of 124.41 and a low of 123.79.
USD/JPY is making a top here after the dollar staged a decent march on the board in the US afternoon. Fed's Lockhart was saying the September timing may be appropriate and that was enough to send the greenback on a rally. The Yen was one of the more resilient of the majors to the move with tough resistance capping the pair below 124.57 July highs.
The rest of the week brings us the BoJ and non farm payrolls. The BoJ may not offer anything new, while we recently heard from the governor over the weekend in a news paper that inflation will pick up quickly in the latter half of this fiscal year and that the Central Bank sees no further monetary stimulus, supporting the Yen. So, the BoJ will likely to stay on hold and maintain an upbeat assessment of the economy and will remain data-dependent with an easing bias, keeping JGB yields low for the rest of the year. Nonfarm payrolls will be keenly monitored, and the consensus comes as a range around 210k.
USD/JPY: hitting a road-block but technicals bullish
Technically, Valeria Bednarik, chief analyst at FXStreet explained. "The 1 hour chart shows that the price is finally advancing above a bullish 100 SMA after being stuck around it since the week started, whilst the technical indicators head north above their mid-lines, supporting a test of the mentioned resistance level.
In the 4 hours chart, the technical picture is also bullish, as the technical indicators have managed to recover above their mid-lines and head north in positive territory, although cautious is advice, as the pair will have a hard time breaking higher before Friday."
USD/JPY is making a top here after the dollar staged a decent march on the board in the US afternoon. Fed's Lockhart was saying the September timing may be appropriate and that was enough to send the greenback on a rally. The Yen was one of the more resilient of the majors to the move with tough resistance capping the pair below 124.57 July highs.
The rest of the week brings us the BoJ and non farm payrolls. The BoJ may not offer anything new, while we recently heard from the governor over the weekend in a news paper that inflation will pick up quickly in the latter half of this fiscal year and that the Central Bank sees no further monetary stimulus, supporting the Yen. So, the BoJ will likely to stay on hold and maintain an upbeat assessment of the economy and will remain data-dependent with an easing bias, keeping JGB yields low for the rest of the year. Nonfarm payrolls will be keenly monitored, and the consensus comes as a range around 210k.
USD/JPY: hitting a road-block but technicals bullish
Technically, Valeria Bednarik, chief analyst at FXStreet explained. "The 1 hour chart shows that the price is finally advancing above a bullish 100 SMA after being stuck around it since the week started, whilst the technical indicators head north above their mid-lines, supporting a test of the mentioned resistance level.
In the 4 hours chart, the technical picture is also bullish, as the technical indicators have managed to recover above their mid-lines and head north in positive territory, although cautious is advice, as the pair will have a hard time breaking higher before Friday."