Japanese Yen rises significantly in Asian session, attributed to hawkish remarks from BoJ board member Hajime Takata. These comments are interpreted as the clearest signal yet of the long-awaited departure from negative interest rates by BoJ. Although it may be premature to declare bullish trend reversal, Yen is poised for further gains in the near term, even as a corrective bounce.
EUR/JPY’s break of 162.55 minor support indicates short term topping at 163.70. Deeper decline is expected to near term channel support (160.86). Considering bearish divergence condition in 4H MACD, it’s possible that EUR/JPY is already corrective whole rise from 153.15. Sustained trading below the channel will target 38.2% retracement of 153.15 to 163.70 at 159.66.
As for USD/JPY, immediate focus is now on 149.51 minor support. Firm break there will target channel support (now at 148.10). Sustained break there will pave the way to 38.2% retracement of 140.25 to 150.87 at 146.81.
