OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/JPY: Upside remains capped by 112.50 post-BoJ’s Kuroda

USD maintains the upbeat tone.

  • Yen regaining ground on BoJ Kuroda’s comments.
  • Japan’s final GDP, US NFP in focus.

The USD/JPY pair is seen keeping its range-trade intact in the late-Asian trades, having faced a stiff resistance near the midpoint of 112 handle.  

USD/JPY: 112 back in sight?

The spot remains better bid but is lacking further upside momentum easing last hours, as the Yen recovers ground across the board, following the comments from the BoJ Governor Kuroda. In his speech, Kuroda sounded committed to achieving its dual objective of achieving 2% price target and economic development, while saying that the central bank has necessary tool engineer a smooth exit from the QQE programme.

BoJ’s Kuroda: BOJ will do whatever it takes to achieve mandates

BoJ’s Kuroda: The CPI is likely to increase moderately

Moreover, a consolidative phase seen in the US dollar across its main competitors near the 2-week tops of 93.62, also reflects the stalled upside seen in the USD/JPY pair, despite the risk-on rally seen in the Japanese stocks, with the Nikkei 225 index rising +1.20% to 22,450 levels.

However, the sentiment around the major remains underpinned amid higher Treasury yields, as the greenback continues to benefit from the US tax optimism. Investors now gear up for the much-awaited US payrolls data due tomorrow. In the meantime, the US weekly jobless claims and risk trends will continue to drive the prices.

USD/JPY Technical View

Jim Langlands at FX Charts writes: “As before, a nimble stance is required, with the short term momentum indicators looking a mixed, while the dailies are leaning slightly higher now and buying dips is preferred for the medium term. Look for a range of 111.65/112.80 to cover it today, with further consolidation likely ahead of the US Jobs report, Friday. A break of good support at 111.60 may lead to stops being triggered and lead the dollar back towards 110.85/111.00 although I don’t see it happening today.”

BoC: Poloz holds for now with caution ruling the day – TD Economics

Brian DePratto, Senior Economist at TD Economics, explains that on expected lines, the Bank of Canada held its key monetary policy interest rate at 1.
Read more Previous

USD repatriation boost: Less than meets the eye in the short run – Westpac

Richard Franulovich, Research Analyst at Westpac, points out that the Republican-led congress is approaching the final stretches of a major US tax ove
Read more Next
Start livechat