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20 May 2014
USD/JPY range bound around 101.30
FXStreet (Edinburgh) - The Japanese yen is strengthening vs. its American counterpart on Tuesday, with the USD/JPY navigating in the 101.30/35 band, or session lows.
USD/JPY focus on the BoJ
The pair keeps the trade in the 101.00/102.00 range since mid-April, with the risk appetite and geopolitical jitters taking turns to lead the sentiment amongst traders. Next of note in the Japanese economy will be tomorrow’s BoJ monetary policy meeting, although consensus expects no room for surprises. Jane Foley, Chief FX Strategist at Rababonk, assessed, “we expect structural improvements in the US economy to enhance demand for the USD medium-term. While USD/JPY may remain on the back foot in the near-term, by year end we expect a crawl towards USD/JPY105 to be evident.
USD/JPY relevant levels
At the moment the pair is down 0.11% at 101.38 with the next support at 100.76 (2014 low Feb.4) followed by 100.63 (high Sep.11) and then 100.00 (low Nov.21). On the flip side, a breakout of 101.60 (high May 19) would expose101.75 (Tenkan Sen) and finally 101.77 (10-d MA).
USD/JPY focus on the BoJ
The pair keeps the trade in the 101.00/102.00 range since mid-April, with the risk appetite and geopolitical jitters taking turns to lead the sentiment amongst traders. Next of note in the Japanese economy will be tomorrow’s BoJ monetary policy meeting, although consensus expects no room for surprises. Jane Foley, Chief FX Strategist at Rababonk, assessed, “we expect structural improvements in the US economy to enhance demand for the USD medium-term. While USD/JPY may remain on the back foot in the near-term, by year end we expect a crawl towards USD/JPY105 to be evident.
USD/JPY relevant levels
At the moment the pair is down 0.11% at 101.38 with the next support at 100.76 (2014 low Feb.4) followed by 100.63 (high Sep.11) and then 100.00 (low Nov.21). On the flip side, a breakout of 101.60 (high May 19) would expose101.75 (Tenkan Sen) and finally 101.77 (10-d MA).