USD/JPY targets 4hr 50 sma at 107.45

By FXStreet USD/JPY has been sold off again as the Yen is battles back and now tests the 108.20 support taking USD/JPY over 100 pips lower than the highs scored at 109.36.

Wall Street was not favourable to the upside case in the major on a negative day that dragged the pair to 108.40 where consolidation took place before new supply in Asia. Of note, analysts at Westpac highlighted that the Bank of Japan governor Kuroda told a German newspaper that “technically” the BoJ can cut its wholesale deposit rate (now -0.1%) as far as the ECB’s -0.4% and that it could still ease policy “substantially” if necessary. “The lack of response on USD/JPY was understandable, with these words sounding rather hollow so soon after the bank surprised markets, but taking no new action late last month.”

We now await the BOJ to release the Summary of Opinions, that offers the Central Bank’s projections for inflation and economic growth. In the US, we have the Cleveland Fed president Mester (hawk/centrist, voter) who speaks on inflation and we also hear from two other Fed voters, Rosengren (dove) and George (hawk) on the economy.

USD/JPY levels

Valeria Bednarik noted that in the 4 hours chart, the …read more

Source:: FX Street