USD/JPY Forecast: BOJ said to analyse unlimited QE
|USD/JPY Current Price: 107.62
- The Bank of Japan would discuss unlimited bond-buying in its next meeting.
- Japan’s March National Inflation and the February All Industry Activity Index up next.
- USD/JPY still neutral, but bears seem ready to give it a go.
The USD/JPY pair continues to trade within familiar levels, although it peaked at 108.04, after news indicating that the Bank of Japan announced it would discuss removing bond-buying limit, during its next policy meeting scheduled for April 27. The effect of the headline was short-lived, with the pair quickly returning to pre-news levels to spent the rest of the day mute.
Japanese data released at the beginning of the day was worse than anticipated, as the April preliminary estimate of the Jibun Bank Manufacturing PMI resulted at 43.7 from 44.8 previously. Also, the February Leading Economic Index was revised to 91.7 while the Coincident Index for the same month came in at 95.5, both missing the market’s expectations. This Friday, the country will publish March National inflation and the February All Industry Activity Index.
USD/JPY short-term technical outlook
The USD/JPY pair is hovering around 107.60, marginally lower in the day. The 4-hour chart shows that the neutral stance persists, although with the downside potential gaining some support, as the intraday spike was rejected by sellers aligned around a flat 100 SMA. The 20 SMA converges with a Fibonacci resistance at 107.70, while technical indicators lack directional strength, the Momentum still around its mid-line and the RSI currently at 47.
Support levels: 107.30 106.95 106.50
Resistance levels: 107.70 108.10 108.50
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