Mon, Jun 05, 2023 @ 17:03 GMT
HomeContributorsTechnical AnalysisUSD/JPY: Surges on BOJ's Decision to Keep its Ultra-Loose Policy Unchanged

USD/JPY: Surges on BOJ’s Decision to Keep its Ultra-Loose Policy Unchanged

The USDJPY jumped 1.5% following BoJ policy decision, hitting a seven-week high in early Friday’s trading.

The central bank’s first meeting under new governor Ueda resulted in a widely expected decision of keeping ultra-low policy unchanged, but modified its future guidance, signaling a broad review of the monetary policy over time.

New governor showed he is not in rush to start withdrawing current monetary stimulus and tightening the policy, despite warning signals from unexpected rise in consumer inflation in Tokyo, which increases pressure on the central bank.

Fresh acceleration pushed the USDJPY pair through pivotal Fibo barrier at 134.75 (61.8% of 137.90/129.64) which repeatedly capped the action since mid-March, signaling continuation of the uptrend from 129.64 (Mar 24 low).

Bulls so far show no signs of fatigue and pressure target at 135.95 (Fibo 76.4%), the last significant obstacle on the way towards key barriers at 136.98 (200DMA) and 137.90 (Mar 8 peak).

Daily studies maintain strong positive momentum and MA’s turned to bullish configuration, supporting the advance, while the pair is on track for the third consecutive bullish weekly close, which additionally brightens near-term outlook.

Bulls will look for confirmation on Friday’s close above former high at 135.13 to keep in play preferred near-term dip-buying strategy.

Only return and close below 134.75 Fibo level would weaken near-term structure on signals of false break higher and a bull-trap.

Res: 135.95; 136.98; 137.35; 137.90.
Sup: 135.13; 134.75; 134.09; 133.77.

Windsor Brokers Ltd
Windsor Brokers Ltd
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

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