USD/JPY slips to 2-week lows on Yamaguchi comments

Omkar Godbole FXStreet Contributor

USD/JPY is fast losing height, now trading at 110.77; the lowest level in near two weeks.

The bid tone around Yen strengthened after Japan Komeito Party leader Yamaguchi said the new Bank of Japan (BOJ) Governor should avoid making drastic changes to the monetary policy.

The current BOJ Governor Kuroda’s term ends in April 2018. There is growing speculation that the BOJ might consider QE taper in the near future. However, Yamaguchi’s comments suggest the odds of the BOJ exiting the ultra expansionary monetary policy are low... Even under the new Governor post April 2018.

The Japanese Yen may remain well bid ahead in the day as Greece issue is raising is ugly head again. US personal spending report due in the US session could influence the treasury yields and the USD/JPY pair.

USD/JPY Technical Levels

A break below 110.61 (Mar 24 low) would expose 110.00 (psychological support) and 109.59 (Apr 25 low). On the higher side, resistance is seen at 110.86 (May 23 low), which, if breached would open up upside towards 111.30 (session high) and 112.13 (resistance on 4-hour chart).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Low
1H	Strongly Bearish	Oversold	High
4H	Bearish	Neutral	Low
1D	Bearish	Neutral	Expanding
1W	Bullish	Neutral	Low
Updated May 29, 17:30 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.