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7 Mar 2014
USD/JPY stalling through the 55 dma
FXStreet (Guatemala) - USD/JPY has rallied higher and penetrated the 55 day ma at 103.19. Karen Jones, chief analyst at Commerzbank explained, “Above 103.19 targets 104.45 en route to the more important 105.45/50 recent high and long term Fibo”. From the calandar today, the US economy added 175K jobs during February, surpassing forecasts at 149K and up from January’s 129K (revised from 113K).
The next economic event for the pair is going t be the BoJ on 10-11 March. Analysts at Bank of America Merrill Lynch said that they do not expect a change in monetary policy. “We do not expect the Bank of Japan to change monetary policy at its policy meeting on 10-11 March. Economic and financial market developments since the previous policy meeting include a risk-off shift in capital flows and destabilization of share prices in response to increasing tension in the Ukraine along with concerns over the yuan exchange rate and China's financial system, which combined should be viewed as slightly increasing downside risks, primarily from emerging market economies. In addition, economic data for the US has been mixed, creating uncertainty in the external environment. It is still possible that these changes will prove to be temporary, however. In addition, industrial production, the unemployment rate, and other economic data for Japan has been strong overall, and with consumer prices moving in line with the BoJ's forecast and with both share prices and exchange rates having so far avoided excessive moves, we believe it is possible that the central bank will choose to wait for more data before taking action”.
USD/JPY Levels
The 20 DMA is 102.25, the 50 DMA is 103.11 and the 200 DMA is 100.20. RSI (14) reads 64.62. Supports are ascending from 102.24, 102.45, 102.61 and 102.83. Spot is 103.47 with resistances at 103.58 and 103.66.
The next economic event for the pair is going t be the BoJ on 10-11 March. Analysts at Bank of America Merrill Lynch said that they do not expect a change in monetary policy. “We do not expect the Bank of Japan to change monetary policy at its policy meeting on 10-11 March. Economic and financial market developments since the previous policy meeting include a risk-off shift in capital flows and destabilization of share prices in response to increasing tension in the Ukraine along with concerns over the yuan exchange rate and China's financial system, which combined should be viewed as slightly increasing downside risks, primarily from emerging market economies. In addition, economic data for the US has been mixed, creating uncertainty in the external environment. It is still possible that these changes will prove to be temporary, however. In addition, industrial production, the unemployment rate, and other economic data for Japan has been strong overall, and with consumer prices moving in line with the BoJ's forecast and with both share prices and exchange rates having so far avoided excessive moves, we believe it is possible that the central bank will choose to wait for more data before taking action”.
USD/JPY Levels
The 20 DMA is 102.25, the 50 DMA is 103.11 and the 200 DMA is 100.20. RSI (14) reads 64.62. Supports are ascending from 102.24, 102.45, 102.61 and 102.83. Spot is 103.47 with resistances at 103.58 and 103.66.