Japanese Yen Shortens As USD Sharpens, FOMC Meeting In Sight
FxGrow | Feb 21, 2017 22:53
USD/JPY extends the bullish momentum despite positive Japanese PMI at 53.5 compared 52.7 on previous sessions. The pair plunged to 113.04 low, then took a reverse turn and clocked 113.77 high today as US index gaped upward at 101.53 high. BOJ Governor Kuroda crossed Reuters early morning stressing that continuing powerful easing is more appropriate. Mr. Kuroda didn't specify steps for easing on monetary system.
Key Headlines:
"Easing is for achieving inflation target, not aimed at FX"
"BOJ is still far from inflation target"
"Continuing powerful easing is appropriate"
"Too early to raise target rates"
"Cannot assume that the BOJ will raise rates because rates are rising overseas "
Fundamentals:
1- FOMC member Kashkari will make a speech at 1:50 PM GMT.
2- FOMC member Harker speech 5:00 PM GMT.
3- FOMC meeting minutes tomorrow at 7:00 PM GMT
Technical levels to watch :
Trend : Bullish Sideways
Key levels to watch : Daily Pp 113.04
Resistance levels : R1 114.16, R2 114.90, R3 115.61
Support levels : S1 112.74, S2 111.82, S3 111.19
Remark : With absence of economic Japanese news, the main focus now is on FOMC meeting tomorrow and US index levels. Stalling above R1 level will send additional bullish waves towards R2&R3 levels. Closing under S2 level is needed to reverse the bullish trend.
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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