USDJPY: Buying EurJpy may be a plan
|US$Jpy traded higher after finding support at 110.50, with some shots seen squaring up ahead of today’s BOJ meeting. The pair has traded up to 111.20, currently at 110.00. No change is expected to policy but Kuroda will attempt to sound positive that inflation will finally reach the BOJ target while at the same time keeping the QE program in place, attempting to weaken the Yen.
1 hour/4 hour indicators: Turning higher
Daily Indicators: Turning lower
Weekly Indicators: Neutral
Preferred Strategy: A neutral stance is required ahead of the BOJ. The short term momentum indicators look constructive, although the medium term charts do hint that the dollar is going remain under some pressure in the day’s ahead. If so, there will be a fair bit of support near 110.00 so any downside momentum, if seen, should be fairly slow. Just looking at the 4 hour chart, it does seem as though a basing formation may be building. Buying EurJpy may be a plan.
Economic data highlights will include:
BOJ Interest Rate Decision/Statement/Press Conference/Outlook
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