BOJ's Kuroda fails to move the needle on USD/JPY


  • Bank of Japan (BOJ) governor Kuroda reiterated his dovish stance while speaking in Parliament earlier today. 
  • USD/JPY, however, has barely moved in response to Kuroda's comments on inflation and monetary policy. 
  • The pair's immediate outlook will remain bullish as long as it is held above 111.82. 

Bank of Japan Governor Kuroda, while speaking in Parliament earlier today, expressed willingness to ease more if the momentum toward the 2 percent inflation target is lost. 

So far, however, Kuroda's dovish comments have failed to put a strong bid under USD/JPY. As of writing, the spot is trading in the red
just below 112.00, having hit a high and low of 112.05 and 111.89, respectively, earlier today.

BOJ's Governor also took note of the negative impact of the external sector and weak wage price inflation despite the labor market tightening. Even so, the markets are not willing to offer JPY, possibly because the bank has little room left to stimulate more, having run an unprecedented stimulus program for six years. For instance, the BOJ reportedly owns 77 percent of the total exchange-traded funds (ETF) market and further purchases may damage stock markets efficiency to allocate capital. 

That said, the anti-risk JPY could drop during the day ahead, as technical studies are biased toward the USD bulls. The pair closed well above 111.82 on Friday, establishing a bullish higher high and validating the higher low of 110.84 created on April 10. As a result, the pair looks set to print fresh multi-month highs above 112.14. The bullish case would weaken if the spot finds acceptance under 111.82.

Technical Levels

USD/JPY

Overview
Today last price 111.98
Today Daily Change -0.06
Today Daily Change % -0.05
Today daily open 112.04
 
Trends
Daily SMA20 111.11
Daily SMA50 111.01
Daily SMA100 110.86
Daily SMA200 111.51
Levels
Previous Daily High 112.1
Previous Daily Low 111.88
Previous Weekly High 112.1
Previous Weekly Low 110.84
Previous Monthly High 112.14
Previous Monthly Low 109.71
Daily Fibonacci 38.2% 112.02
Daily Fibonacci 61.8% 111.97
Daily Pivot Point S1 111.92
Daily Pivot Point S2 111.79
Daily Pivot Point S3 111.7
Daily Pivot Point R1 112.13
Daily Pivot Point R2 112.22
Daily Pivot Point R3 112.34

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: risk aversion could send it sub-1.1180

EUR/USD capped by a critical Fibonacci resistance for two weeks in-a-row. The American dollar has closed the week on a high note as hopes for significant rate cuts faded.

EUR/USD News

GBP/USD: bears to retake control on a break below 1.2475

Renewed demand for the greenback has resulted in the GBP/USD pair giving back half of its Thursday’s gains at the end of the week, with the pair closing it just above the 1.2500 figure.

GBP/USD News

USD/JPY: bearish case firmer once below 107.20

The USD/JPY pair flirted with the 108.00 level by the end of the week on renewed demand for the greenback but retreated sharply from the level to settle at around 107.70.

USD/JPY News

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •