USD/JPY: modestly higher, 112.00 possible
|USD/JPY Current price: 111.45
The Minutes from the latest BOJ meeting released overnight showed that policymakers are confident on reaching their 2% inflation target, despite still distant. Also, officers acknowledged that the amount of government debt purchases will fluctuate under the current quantitative easing programme, but don't expect that to pose a problem. Overall, the Central Bank maintained the status quo, with no signs of tapering at sight. The USD/JPY pair fell down to 111.06 early London, but trimmed its daily losses to trade pretty much flat daily basis around 111.40 ahead of Wall Street's opening. US Treasury yields trade marginally lower, preventing the pair from advancing further, although things may change after the US opening. In the meantime, the 4 hours chart shows that the price holds above the 50% retracement of its latest bullish rally after briefly falling below it, now aiming to recover above its 200 SMA and with technical indicators bouncing from their mid-lines, but still below previous weekly highs, overall favoring some gains ahead. The immediate resistance comes at 111.60, with an acceleration beyond it favoring a test of the 112.00 price zone, en route to 112.45.
Support levels: 111.24 110.85 110.50
Resistance levels: 111.60 112.00 112.45
View Live Chart for the USD/JPY
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