USD/JPY Current price: 111.83
- BOJ left monetary policy unchanged, put a time frame to its forward guidance.
- The US will release today Durable Goods Orders, seen bouncing in March.
The USD/JPY pair is trading a few pips below the 112.00 level again, despite bulls' enthusiasm by the end of the American session. The pair traded as high as 112.39, its highest since last December amid broad dollar's demand Wednesday, triggered by a series of political and macroeconomic news that highlighted the imbalances between the US economic health and that of its major rivals. Dollar's momentum faded early Asia as Australian, and New Zealand markets were closed celebrating the ANZAC Day, but retained its strength against most rivals, except the JPY affected by BOJ's decision.
The Bank of Japan left its monetary policy unchanged as expected, but, for the first time, it put a time frame on its forward guidance. Governor Kuroda said that global economic uncertainties had drawn policymaker's attention, and therefore, "wanted to clarify that we will keep rates low for a very long time." Rates will be maintained at current levels at least until the spring of 2020, but the timeframe could be much longer than that if the economy weakens. Not that Kuroda & Co. ultra-dovish stance surprised investors, neither a solid reason to buy the Yen. Seems that the lack of options of the central bank, fueled demand for safety. The sour tone of equities and depressed government bonds´ yields add to Yen's strength.
The US will release this Thursday its usual weekly unemployment figures, ad March Durable Goods Orders, seen bouncing after February's slump. The headline figure is expected at 0.8% vs. the previous -1.6%, while the Ex-transportation number is forecast at 0.2% vs. a previous -0.1%. Better-than-expected figures should boost the greenback, even against its Japanese rival.
The pair is back trading below its 20 SMA in the 4 hours chart and above the larger ones, which anyway lose upward strength. In the mentioned chart, technical indicators eased, the Momentum still stuck in neutral territory and the RSI gaining downward traction at around 46, skewing the risk to the downside. The pair is also nearing its recent lows in the 111.60 region, with a break below the level opening doors for another move south toward the 111.00 price zone.
Support levels: 111.60 111.25 110.90
Resistance levels: 112.15 112.50 112.85
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to recovery gains near 1.0850 ahead of Fedspeak
EUR/USD trades in positive territory near 1.0850 on Friday following a four-day slide. China's stimulus optimism and a broad US Dollar correction help the pair retrace the dovish ECB decision-induced decline. All eyes remain on the Fedspeak.
GBP/USD pares UK data-led gains at around 1.3050
GBP/USD is trading at around 1.3050 in the second half of the day on Friday, supported by upbeat UK Retail Sales data and a pullback seen in the US Dollar. Later in the day, comments from Federal Reserve officials will be scrutinized by market participants.
Gold at new record peaks above $2,700 on increased prospects of global easing
Gold (XAU/USD) establishes a foothold above the $2,700 psychological level on Friday after piercing through above this level on the previous day, setting yet another fresh all-time high. Growing prospects of a globally low interest rate environment boost the yellow metal.
Crypto ETF adoption should pick up pace despite slow start, analysts say
Big institutional investors are still wary of allocating funds in Bitcoin spot ETFs, delaying adoption by traditional investors. Demand is expected to increase in the mid-term once institutions open the gates to the crypto asset class.
Canada debates whether to supersize rate cuts
A fourth consecutive Bank of Canada rate cut is expected, but the market senses it will accelerate the move towards neutral policy rates with a 50bp step change. Inflation is finally below target and unemployment is trending higher, but the economy is still growing.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.