Forex: USD/JPY falls on BoJ's Shirakawa remarks
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USD/JPY
FXstreet.com (Barcelona) - The USDJPY is under pressure ahead of the European session, at 81.15, as the market fully retraces the rally to 81.40 zone made pre-BoJ meeting. The Japanese central bank didn't act, as expected, and BoJ's Shirakawa doesn't agree with the candidate for Prime Minister, Shinzo Abe.
The leader of the opposition party LDP said that if he came out as the winner of the election he would look into the BoJ laws and push for massive intervention while aiming at 3% inflation. BoJ's Shirakawa considered such target as unrealistic in Japan, that intervention through JGBs is alrady being made and that it is very important that the central bank remains independent.
"USDJPY continues to target 81.78/87.This is the upside measured target from the wedge formation. Just below it sits the 61.8% Fibonacci retracement at 81.49 which should be reached today", wrote analyst Axel Rudolph, pointing to good support at 80.68/63 (June, early November highs and 50% retracement).
The leader of the opposition party LDP said that if he came out as the winner of the election he would look into the BoJ laws and push for massive intervention while aiming at 3% inflation. BoJ's Shirakawa considered such target as unrealistic in Japan, that intervention through JGBs is alrady being made and that it is very important that the central bank remains independent.
"USDJPY continues to target 81.78/87.This is the upside measured target from the wedge formation. Just below it sits the 61.8% Fibonacci retracement at 81.49 which should be reached today", wrote analyst Axel Rudolph, pointing to good support at 80.68/63 (June, early November highs and 50% retracement).
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