USD/JPY is still in a sideways range between 120.50/85 on the upside and 118.50/30 on the downside. Daily moving averages are horizontal: the market is in the sleeping state. US non-farm payrolls came close to forecasts and failed to give USD enough strength for a decisive break higher. We need a stream of strong data from the US for the uptrend to resume. Next week will be uneventful in Japan, so watch American data like retail sales and PPI.
Support is at 119.05 and 118.50/30. Below the pair has support in the 117.00 area. Traders will buy USD/JPY on the dips as Japanese investors and companies are selling the yen and many analysts still expect the Bank of Japan to increase monetary stimulus.
The minutes of the Bank of Japan’s April meeting showed that the members of the central bank were concerned about the ability to reach the 2% target inflation this year. In addition, some policymakers are against tapering quantitative easing at the moment, as it would constrain the inflationary impact.
Conditions for sideways trading remain. Buying on the dips is possible as the pair may test levels in the 121.00 area.
Support is at 119.05 and 118.50/30. Below the pair has support in the 117.00 area. Traders will buy USD/JPY on the dips as Japanese investors and companies are selling the yen and many analysts still expect the Bank of Japan to increase monetary stimulus.
The minutes of the Bank of Japan’s April meeting showed that the members of the central bank were concerned about the ability to reach the 2% target inflation this year. In addition, some policymakers are against tapering quantitative easing at the moment, as it would constrain the inflationary impact.
Conditions for sideways trading remain. Buying on the dips is possible as the pair may test levels in the 121.00 area.
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