USD/JPY: lacks direction but Yen broadly in favour

By FXStreet FXStreet (Guatemala) – USD/JPY‘s bid ran into offers in ever volatile market conditions where moves direct directional strength and momentum soon fades and short-term trends tend to reveres offering good two-way business. However, in the days coming we might see stronger volatility with the prospects of the FOMC and BoJ.

The BoJ is sighted to needing to act and officials in the media have been piping up about the strength of the Yen. However, analyst at Bank of Tokyo Mitsubishi explained that they are not convinced that the BoJ will act or any hype will have any material effect of the Yen’s broader directional strength that has surfaced on the back of the risk off mood in financial markets. The Fed is very unlikely to hike again and some analysts can’t imagine a hike until at least June.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that from a technical point of view, the 1 hour chart shows that the price has advanced above its 100 and 200 SMAs, while the technical indicators are losing their bullish strength near overbought levels.

In the 4 hours chart, further gains are still unclear, given that the price remains far …read more

Source:: FX Street