FXstreet.com (Córdoba) - USD/JPY jumped to a daily high of 77.90 at the beginning of the New York session in the wake of BoJ comments. The central bank stated that the BoJ and the government should act together to combat yen strength and said that the purchase of foreign bonds and riskier assets are feasible options.
However, as most of the times happen with jawboning, the effects are quickly undone. The dollar lacked momentum to extend its recovery past the 77.90 zone and pulled back to currently trade at the 77.75 area, virtually unchanged since opening.
"Slight improvement on hourly chart studies, keeps hopes of possible stronger corrective action, boosted by comments from Japanese Central Bank, however, overall negative sentiment does not leave much room for this, unless clear break above 78.00 occurs", said Slobodan Drvenica, analyst at Windsor Brokers Ltd. "On the downside, loss of 77.58 support, will focus our near-term targets at 77.12/00".
However, as most of the times happen with jawboning, the effects are quickly undone. The dollar lacked momentum to extend its recovery past the 77.90 zone and pulled back to currently trade at the 77.75 area, virtually unchanged since opening.
"Slight improvement on hourly chart studies, keeps hopes of possible stronger corrective action, boosted by comments from Japanese Central Bank, however, overall negative sentiment does not leave much room for this, unless clear break above 78.00 occurs", said Slobodan Drvenica, analyst at Windsor Brokers Ltd. "On the downside, loss of 77.58 support, will focus our near-term targets at 77.12/00".
