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.

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