USD/JPY outlook: Loses ground as BoJ keeps rates on hold and says not in hurry for further tightening
|USD/JPY
USDJPY jumped over two figures on Friday after Bank of Japan kept interest rates unchanged and signaled it was not in rush for further hikes, despite the borrowing cost is still very low.
Renewed attempt higher comes after Thursday’s rally of almost identical size stalled on approach to 144 barrier, with subsequent pullback contributing to daily candle with long upper shadow.
This could be a significant warning despite today’s renewed strength, as key barriers at 144.29/45 (Fibo 61.8% of 147.21/139.57/ daily Kijun-sen) need to be cleared to sideline persisting downside risk.
Daily studies point to bearish signals from still strong negative momentum, thickening descending daily cloud and overbought stochastic, partially offset by 10/20DMA’s now turning to bullish setup.
Fresh recovery is expected to keep in play while holding above broken 20DMA (143.42) though larger picture to remain biased lower as long as the price action holds below daily Kijun-sen.
Res: 144.45; 145.00; 145.40; 146.07.
Sup: 143.42; 142.49; 142.27; 142.00.
Interested in USD/JPY technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.