Filed Under:
Forex pairs in this Article » USD/JPY (Barcelona) - After appreciating to the 89.30 region, the Japanese yen is now losing ground against the greenback, pushing the cross back to the 89.80 region, ahead of the BoJ monetary policy meeting. Recall that expectations have been building up for a case of further easing by the BoJ - most likely ¥10 trillion - and a higher inflation target, 2.0%.

TD Securities explains "Daily price action suggests some moves are already being made to take advantage of a short-term dip in the USD& Daily price action may form a bearish key reversal signal today (a lower close confirms) after making a marginal new high on session earlier today. A modest dip in USDJPY post-BoJ could see the USD fall back to 87.00/87.550 or so. If the BoJ manages to disappoint (as opposed to merely meet) market expectations, USDJPY may drop to 83/85"

The cross is now losing 0.41% at 89.71 and a dip below the psychological level at 89.00 would accelerate the decline towards 88.53 (Tenkan Sen line) and finally 88.13 (low Jan.17).
On the upside, resistance levels are located at 90.25 (high Jan.21) ahead of 90.48 (3m rising channel top) and 90.59 (high Jun.23 2010).
comments powered by Disqus