Forex: USD/JPY bouncing off lows, around 88.70/75
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USD/JPY
FXstreet.com (Barcelona) - The Japanese yen is resuming its appreciation against the US dollar on Tuesday, after the BoJ has acted in line with market consensus in its monetary policy meeting.
"The increase in the Asset Purchase Program is not particularly aggressive and the returns to the macroeconomy from the formal increase in the BoJ's inflation target will only be realized over time. Greater signs of cooperative agreement between the BoJ and the government are a positive factor but, again, the returns to the real economy from this via increased certainty will only play out over time", commented Adrian Foster, analyst at Rabobank.
The cross is now losing 0.90% at 88.79 and a dip below 88.13 (low Jan.17) would clear the way to the psychological level at 88.00 and then 87.79 (low Jan.16).
On the flip side, resistance levels line up at 90.18 (high Jan.22) followed by 90.25 (2013 high Jan.21) and finally 90.59 (high Jun.23 2010).
"The increase in the Asset Purchase Program is not particularly aggressive and the returns to the macroeconomy from the formal increase in the BoJ's inflation target will only be realized over time. Greater signs of cooperative agreement between the BoJ and the government are a positive factor but, again, the returns to the real economy from this via increased certainty will only play out over time", commented Adrian Foster, analyst at Rabobank.
The cross is now losing 0.90% at 88.79 and a dip below 88.13 (low Jan.17) would clear the way to the psychological level at 88.00 and then 87.79 (low Jan.16).
On the flip side, resistance levels line up at 90.18 (high Jan.22) followed by 90.25 (2013 high Jan.21) and finally 90.59 (high Jun.23 2010).
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