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29 Oct 2015
USD/JPY: all eyes on BoJ - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that USD/JPY regained the 121.00 level ahead of the Asian opening, as investors are waiting for the upcoming Bank of Japan economic policy decision.
Key Quotes:
"The market has been eyeing this particular meeting as the country will also release its half-year forecast, which will give a clearer picture of the economic situation, and therefore if it needs or not, additional QE. Anyway, if the BOJ announces an expansion of its facility program, the pair will likely rally, although notice that the movement has been largely priced in."
"An on-hold stance on the other hand, may trigger a more interesting bearish move. Technically, the 1 hour chart shows that the price is holding well above its 100 SMA while the technical indicators have lost their upward strength near overbought territory, in line with further gains."
"In the 4 hours chart, the outlook also favors the upside, with the Momentum indicator still heading higher well above its 100 level and the RSI holding around 59."
Key Quotes:
"The market has been eyeing this particular meeting as the country will also release its half-year forecast, which will give a clearer picture of the economic situation, and therefore if it needs or not, additional QE. Anyway, if the BOJ announces an expansion of its facility program, the pair will likely rally, although notice that the movement has been largely priced in."
"An on-hold stance on the other hand, may trigger a more interesting bearish move. Technically, the 1 hour chart shows that the price is holding well above its 100 SMA while the technical indicators have lost their upward strength near overbought territory, in line with further gains."
"In the 4 hours chart, the outlook also favors the upside, with the Momentum indicator still heading higher well above its 100 level and the RSI holding around 59."