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22 May 2015
USD/JPY bulls looking for a break away
FXStreet (Guatemala) - USD/JPY is currently trading at 121.52 with a high of 121.57 and a low of 120.63.
USD/JPY strength is underpinned by Yellen's speech coming as hawkish with intentions of a rate rise this year. "Delaying action to tighten monetary policy until employment and inflation are already back to our objectives would risk overheating the economy...I think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target and begin the process of normalizing monetary policy." She added however," We will adjust monetary policy in response to developments in economic activity and inflation as they occur."
There is little more than we already have on matters relating to the economy in the US. However, the BOJ upgraded its assessment of the economy at the conclusion of its meeting overnight, confirming that the ideas of QQE expansion are premature. Nevertheless, the CPI's from the US today were the catalyst to undo what damage the BoJ did to the bulls and the major is taking back its seat on the 121 handle but with conviction.
Technically , to date, the major has struggle on the 121 with a lack of conviction on the bid each time, and dips tease and bring back ideas on the downside yet again with levels as 120.80, 120.00/40, 119.00/42 and the 118.80 level come as supports before 118.30, 117.80 and the well defined 116 level. However, a break here will bring us out of reach of these downside territories and put 124.13, June 2007 highs, back on the map.
USD/JPY strength is underpinned by Yellen's speech coming as hawkish with intentions of a rate rise this year. "Delaying action to tighten monetary policy until employment and inflation are already back to our objectives would risk overheating the economy...I think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target and begin the process of normalizing monetary policy." She added however," We will adjust monetary policy in response to developments in economic activity and inflation as they occur."
There is little more than we already have on matters relating to the economy in the US. However, the BOJ upgraded its assessment of the economy at the conclusion of its meeting overnight, confirming that the ideas of QQE expansion are premature. Nevertheless, the CPI's from the US today were the catalyst to undo what damage the BoJ did to the bulls and the major is taking back its seat on the 121 handle but with conviction.
Technically , to date, the major has struggle on the 121 with a lack of conviction on the bid each time, and dips tease and bring back ideas on the downside yet again with levels as 120.80, 120.00/40, 119.00/42 and the 118.80 level come as supports before 118.30, 117.80 and the well defined 116 level. However, a break here will bring us out of reach of these downside territories and put 124.13, June 2007 highs, back on the map.