- Tracks the DXY recovery.
- Little affected by BoJ’s steady policy.
- Eyes on the US final GDP & Philly Fed manufacturing gauge.
The recovery attempt in the USD/JPY pair appears to find fresh momentum, as the Yen remains undermined by the unchanged monetary policy stance announced by the BoJ today.
USD/JPY re-takes 113.50
The spot stalled its corrective slide from one-week lows and staged a minor-rebound last hours, closely following the USD price-action against its main competitors. The status-quo maintained by the Japanese central bank on its monetary policy settings combined with the unchanged economic assessment capped the recovery mode seen in the Yen against its American rival, now pushing USD/JPY back towards the midpoint of the 113 handle.
Moreover, the recent strength seen behind the Treasury yields across the curve on the US tax cuts approval also keeps the bullish tone intact in the major. The 10-year Treasury yields rose to 9-month tops of 2.502%, as the US House tax vote passage battered the Treasuries.
Focus now shifts towards the BoJ Governor Kuroda’s press conference due later at 0630GMT ahead of the US final GDP, Philly Fed manufacturing index and jobless claims data.
USD/JPY Technical View
Valeria Bednarik, Chief Analyst at FXStreet, explained, " The pair has turned short-term bullish according to technical readings in the 4 hours chart, as the 100 SMA is crossing above the 200 SMA both in the 112.60 region, while the Momentum gains upward traction in positive territory, and is at its highest for the week, supporting further advances toward the critical 114.40 mid-term resistance. Support levels: 112.60 112.00 111.60. Resistance levels: 113.35 113.70 114.00.”
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