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6 Aug 2013
USD/JPY retreats from highs
FXstreet.com (Edinburgh) -After hitting session highs around 98.60, the USD/JPY is now back to the area of 98.35/40, partially trimming yesterday’s losses.
USD/JPY focus on the BoJ meeting
The BoJ will hold its monthly meeting next Thursday, with market consensus expecting the central bank to leave unchanged its monetary policy ahead of Friday’s key Monthly Economic Survey. Greg Gibbs, FX Strategist at RBS, assessed, “The recent recovery in JPY is not consistent with a recent ebbing in confidence in Japan. It suggests that the prospect of a consumption tax hike and weakness in Asian economies is weighing on sentiment. This may soon force the BoJ towards more monetary policy easing… we are inclined to fade the recent recovery in JPY and seek to use the current weakness to establish a long USD/JPY position”.
USD/JPY key levels
The pair is now up 0.09% at 98.39 facing the initial resistance at 99.02 (Tenkan Sen line) ahead of 99.15 (high Aug.15) and then 99.56 (Kijun Sen line). On the downside, a break below 97.84 (low Aug.6) would aim for 97.66 (low Aug.1) and then 97.64 (weekly Tenkan Sen line).
USD/JPY focus on the BoJ meeting
The BoJ will hold its monthly meeting next Thursday, with market consensus expecting the central bank to leave unchanged its monetary policy ahead of Friday’s key Monthly Economic Survey. Greg Gibbs, FX Strategist at RBS, assessed, “The recent recovery in JPY is not consistent with a recent ebbing in confidence in Japan. It suggests that the prospect of a consumption tax hike and weakness in Asian economies is weighing on sentiment. This may soon force the BoJ towards more monetary policy easing… we are inclined to fade the recent recovery in JPY and seek to use the current weakness to establish a long USD/JPY position”.
USD/JPY key levels
The pair is now up 0.09% at 98.39 facing the initial resistance at 99.02 (Tenkan Sen line) ahead of 99.15 (high Aug.15) and then 99.56 (Kijun Sen line). On the downside, a break below 97.84 (low Aug.6) would aim for 97.66 (low Aug.1) and then 97.64 (weekly Tenkan Sen line).