USD/JPY CHANGES DIRECTION TO POSITIVE TREND
The USD/JPY price keeps moving upwards after investors ignored the statement of the Bank of Japan on monetary policy. Traders didn’t expect any changes in the interest rates on deposits that are at the level of -0.10% and the amount of asset purchasing program of 80 trillion yen per year. The central bank noted the turn of the country’s economy towards moderate growth. The main factor that keeps pushing the price higher is the hawkish views of the Fed on the possibility of a third interest rate increase in the US this year. Pressure on the USD/JPY quotes may come from the US where investors fear the possible correction in tech stocks.
Currently, the quotes are moving north and the closest targets in case of its continuation will be 111.70 and 112.00. Previously the price has broken through the angled trend line that has become the sign of a trend change. Today we may see the price rollback on the background of fixing positions before the weekend. In this case, a fall is possible to 110.75 and 110.30. Volatility growth today is expected after the release of data on housing starts and building permits in the US at 12:30 GMT.