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17 Apr 2014
USD/JPY holds above 102.15 support
FXStreet (Bali) - USD/JPY broke above the 102.15 resistance area in the last Asian session, with the price action that followed range-bounding between a 102.35 high and 102.15, now support.
Strong gains in the Nikkei 225 on Wednesday was the main driver pushing up USD/JPY, which has proven very resilient to extend losses beyond 101.30/50, level of formidable support. Headlines out of Nikkei late Tuesday, suggesting that the Japanese government will soon downgrade economic forecasts forced by an increase in sales tax, may have been perceived as higher chances of a new easing package by the BoJ to be announced further down the road, although not before June/July judging by the latest language used by BoJ Governor Kuroda.
As Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows indicators turning slightly higher around their midlines, suggesting limited bearish interest in the short term. An educated guess would say that traders await Nikkei opening, as another day of gains in the index would be a good reason to keep on buying the pair."
Strong gains in the Nikkei 225 on Wednesday was the main driver pushing up USD/JPY, which has proven very resilient to extend losses beyond 101.30/50, level of formidable support. Headlines out of Nikkei late Tuesday, suggesting that the Japanese government will soon downgrade economic forecasts forced by an increase in sales tax, may have been perceived as higher chances of a new easing package by the BoJ to be announced further down the road, although not before June/July judging by the latest language used by BoJ Governor Kuroda.
As Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows indicators turning slightly higher around their midlines, suggesting limited bearish interest in the short term. An educated guess would say that traders await Nikkei opening, as another day of gains in the index would be a good reason to keep on buying the pair."