8 Aug 2013
USD/JPY rebounding off lows ahead of BoJ
FXstreet.com (New York) - The USD/JPY foreign exchange rate rebounded off of earlier lows Thursday morning, with a busy morning scheduled for the pair.
In Japan, the Trade Balance – BOP Basis (June) came in at ¥-139.2B, against expectations of ¥-128.7B. Moreover, Foreign bond investment (August 2) has yielded ¥689.9, compared to ¥234.6B. Later today at 03:00 the BOJ is slated to report its interest rate decision and subsequently the monetary policy statement.
USD/JPY strategic bias
According to Jim Langlands at FX Charts, “Momentum points sharply lower on all time horizons for USD/JPY, although the shorter term charts are becoming a little oversold, so we may see some consolidation or even a bit of a squeeze higher. This would only appear to offer better selling opportunities as the dollar heads towards the next meaningful support at 95.60 (76.4% of 93.78/101.52) and then to the rising trend support at 94.70.”
Technically speaking, the USD/JPY is now operating at 96.72, rebounding off previous lows at 96.31. In light of the recent rise, the pair will find itself held by resistances at 96.66 (20-day SMA), onto 96.89 (June 21 low), and 97.24 (June 24 low).
In Japan, the Trade Balance – BOP Basis (June) came in at ¥-139.2B, against expectations of ¥-128.7B. Moreover, Foreign bond investment (August 2) has yielded ¥689.9, compared to ¥234.6B. Later today at 03:00 the BOJ is slated to report its interest rate decision and subsequently the monetary policy statement.
USD/JPY strategic bias
According to Jim Langlands at FX Charts, “Momentum points sharply lower on all time horizons for USD/JPY, although the shorter term charts are becoming a little oversold, so we may see some consolidation or even a bit of a squeeze higher. This would only appear to offer better selling opportunities as the dollar heads towards the next meaningful support at 95.60 (76.4% of 93.78/101.52) and then to the rising trend support at 94.70.”
Technically speaking, the USD/JPY is now operating at 96.72, rebounding off previous lows at 96.31. In light of the recent rise, the pair will find itself held by resistances at 96.66 (20-day SMA), onto 96.89 (June 21 low), and 97.24 (June 24 low).