19 Jan 2015
USD/JPY erases losses
FXStreet (Córdoba) - USD/JPY is trading above 117.60, at the highest level since Asian hours, after erasing losses. The pair bottomed at 116.91 and then moved with an upside bias for the rest of the day, on a low volume session as Wall Street remains close.
Greenback approached Friday’s highs that lie at 117.78, above the next area to consider lies at 117.95 - 118.00 (Jan 15 high). To the downside the immediate support now could be located at 117.30/35.
BoJ eyed
On Wednesday the Bank of Japan will announce it decision on monetary policy. According to analysts at Brown Brother Harriman, the bank will likely reduce its growth and inflation forecasts. “Yet cutting the inflation forecast will fuel expectations for even more monetary efforts unless there is a clear signal from BOJ Governor Kuroda. This need not be the abandoning of the 2% target, but modifying it in light of the drop in energy prices.”
Greenback approached Friday’s highs that lie at 117.78, above the next area to consider lies at 117.95 - 118.00 (Jan 15 high). To the downside the immediate support now could be located at 117.30/35.
BoJ eyed
On Wednesday the Bank of Japan will announce it decision on monetary policy. According to analysts at Brown Brother Harriman, the bank will likely reduce its growth and inflation forecasts. “Yet cutting the inflation forecast will fuel expectations for even more monetary efforts unless there is a clear signal from BOJ Governor Kuroda. This need not be the abandoning of the 2% target, but modifying it in light of the drop in energy prices.”