Japanese Yen Sharpens Ahead of Local Data
FxGrow | Mar 22, 2017 02:19
US Dollar lost the tight grip and all rivals are taking advantage of pale greenback with 99.53 low today and U.S index on the path of further losses. USD/JPY currently bearish and the pair added extra consecutive bearish session to 5 initial with 112.26 low, and with current situation of US Dollar, the pair might dip lower.
BOJ board member Iwata crossed the wires last minutes, via Reuters, making a speech in parliament.
Key Headlines:
"JPY Could Weaken Vs USD Based On Interest Rate Differentials"
"Stresses Rate Differentials Are Not Only Factor In Determining FX Levels"
"Difficult to narrow output gap weak yen"
Iwata confirmed that interest rates are not the only factor for Yen bullish gains taking into consideration the collapsing U.S Dollar.
Fundamentals:
1- JPY Monetary Policy Meeting Minutes today at 11:50 PM GMT.
2- JPY Japanese Trade Balance today at 11:50 PM GMT.
3- JPY All Industries Activity m/m tomorrow 4:30 AM GMT.
Technical:
Trend : Bearish
Resistance levels : R1 113.08, R2 113.96, R3 114.92
Support levels : S1 112.04, S2 111.45, S3 110.66
Remark : With U.S data empty pocket today and tomorrow, and taking current situation of weak US Dollar, the is set for additional losses. Keep an eye on US Index levels correlated with Yellen speech on Thursday. A penetration for R2 and closing above it is a signal for trend reversal. Be careful for setbacks on support and resistance levels as a first test.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
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