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Forex pairs in this Article » USD/JPY (Edinburgh) - The USD/JPY is reflecting the current lack of a clear direction that is prevailing amongst traders, which are still digesting yesterday’s speech by Bernanke and accentuating the congestion pattern.

USD/JPY hit by Bernanke, BoJ

In line with market consensus, the BoJ left unchanged its monetary policy adding extra selling pressure to the pair, already punished by the dovish speech by Chief Bernanke. Analysts at BTMU assessed “We also believe there has been an over-reaction to the comments from Fed Chairman Bernanke and hence the scope for further downside for USD/JPY from here is limited. Next week’s semi-annual testimony by Chairman Bernanke should be USD/JPY supportive also”.

USD/JPY levels to watch

At the moment, the pair is now losing 0.63% at 99.04 and a breach of 98.20 (low Jul11) would open the door to 98.15 (cloud base) and then 97.64 (50% of 93.75-101.54). On the upside, resistance levels align at 99.92 (high Jul.11) followed by 100.00 (psychological level) and finally 100.33 (MA200h).
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