USD/JPY: recoveries tempered by dovish Kuroda

By FXStreet USD/JPY has started to feel some upside pressure and the Yen is back tracking its advance . However, the upside is limited given that US stocks are performing in the red and weighed on by oil prices.

Oil keeps driving sentiment

WTI oil has dropped from $33.32 the high to $31.61 the low so far as its seems there will not be any cutting of production any time soon while the Suadi oil minister prefers to see the market determine the price and a low prices to adjust accordingly over time, signally that there is more downside to come, especially given Iran and Iraq are both raising their production. While uncertainty shapes the market, the Yen will remain in demand.

However, Kuroda has been signalling to the market that we should expect further cuts from the BoJ, perhaps as soon as next month which should keep a lid on any advances on the 113 handle on a recovery attempt.

USD/JPY levels

Technically, analysts at BBH noted that, “The dollar has been pushed through the JPY112.00 level after trading near JPY113.40 yesterday”.

The analysts added, “We have been concerned that from a technical perspective, there was scope for the greenback return to (and …read more

Source:: FX Street