OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/JPY off lows, around 122.80

FXStreet (Edinburgh) - The greenback has surrendered its initial gains vs. the Japanese currency on Friday, dragging USD/JPY to test the 122.80/70 band, or session lows.

USD/JPY capped by 123.70

Spot is retreating for the second consecutive session so far after being rejected from recent tops in the 123.70 area on Wednesday in the wake of the FOMC minutes.

In the meantime, the main drivers for the pair’s price action in the near term remain the likeliness of further easing by the BoJ (mainly following the recently published GDP figures) and the possibility of a Fed’s lift-off in December, with probabilities gyrating around 70%.

USD/JPY levels to consider

At the moment the pair is losing 0.05% at 122.78 and a breakdown of 122.20 (low Nov.16) would aim for 121.75 (100-day sma) and then 120.87 (50% Fibo of 125.28-116.46). On the flip side, the next hurdle lies at 123.69 (high Nov.18) followed by 124.58 (high Jul.30) and finally 125.29 (high Aug.12).

EUR: ECB policy meeting account indicates growing worries - MUFG

Derek Halpenny, European Head of GMR, notes that the markets are lacking momentum at present with market participants fully anticipating a policy easing by the ECB on 3rd December followed by a rate increase by the FOMC on 16th December.
Read more Previous

Draghi’s speech underline euro zone’s inflation worries and hint at more easing

Speaking at the European Banking Congress in Frankfurt , ECB supremo Mario Draghi mentioned ECB’s growing concern that the rate of inflation in euro area, currently 0.1%, is slipping further from their target of close to under 2 per cent. He said the central bank will do everything necessary to ensure that inflation returns rapidly toward the goal of just under 2%, president. “If we decide that the current trajectory of our policy is not sufficient to achieve that objective, we will do what we must to raise inflation as quickly as possible”.
Read more Next
Start livechat