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Forex pairs in this Article » USD/JPY
USD/JPY started the week with the spectacular crash as it fell down all the way to 104.29 from 104.81 at the opening.

The Yen and the FOMC

Monday morning USD/JPY quickly retraced all the gains made at the end of last week and moved close to the lows of January 3 at 104.055 (current low is 104.14). Yen is negatively correlated to the stock market, so the Nikkei selling pressure enhanced the movement. Quite a number of FED policy makers spoke about the US monetary policy and economic conditions at the annual conference of the American Economic Association in Philadelphia. Their comments revealed a variety of opinions within the Fed: Plosser believes that the Central Bank may cut purchase asset program by larger than $10 bn a month if economic data is supportive; while Rosengreen is sure that the tapering was premature due to high unemployment and low inflation. This new bout of uncertainty resulted in mixed and mostly risk aversive play, which helped the Yen on its upside journey.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 104.58, with support below at 104.27, 103.77 and 103.46, with resistance above at 105.08, 105.39, and 105.89. Hourly Moving Averages are bearish, with the 200SMA at 104.86 and the daily 20EMA at 104.04. Hourly RSI is neutral at 38.56.
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