stian posted: Not as agreesive as I would've hoped, but: 'Bank of Japan Governor Haruhiko Kuroda said on Thursday the central bank is ready to take additional monetary easing steps if needed' (Reuters). So certainly still on the cards for next BoJ meeting.
Yes that is what market participants expecting. However Japan's alone effort will be very hard to bring a great trend reversal direction of USD/JPY. Yen strong demand will remain. It should be both effort of U.S and Japan that can bring a change. But Fed rate hike is about to postpone further due to brexit as we see.
Japan are becoming quite a risky 'safe heaven' compare to the US and Australia. ASX200 up 0.58%. Sp500 future at 0% (yesterday up 0.54%), while Nikkei is down 0.67%. Even FTSE100 is up 1.44%. Japan is really underperforming most of the developed markets. While it is away from the turbulence of Europe, Japan seems less and less appealing - at least macro wise.
The USDJPY had a strong bullish momentum yesterday topped at 102.89 and hit 103.28 earlier today in Asian session. The bias is bullish in nearest term testing 103.55 which is a good place to sell with a tight stop loss. Immediate support is seen around 102.45. A clear break below that area could lead price to neutral zone in nearest term testing 102.00 – 101.50 region. Overall I still prefer a bearish scenario but as long as stay above 101.50 price is clearly in a bullish correction bias right now. On the upside, a clear break and daily close above 103.55 would expose 105.00 region.
The US dollar recorded solid growth versus the yen on Monday, broke a six-day negative series and nearly recouping its losses. The dollar added almost 220 pips to a closing price of 102.77 after trading in the 102.88 and 100.52. Price overcame the mean values and the index of relative strength added significant positions, suggesting additional gains.
On Tuesday, the dollar falls against other major currencies as investors shifted attention to the forthcoming meeting of global central banks on expectations of additional stimulus measures from their side. USD/JPY pair rose to 104.89, the highest value since June 24.
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