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Forex pairs in this Article » USD/JPY
FXstreet.com (Barcelona) - USD/JPY climbed steadily throughout the days trading, climbing from a low of 102.56, to post a high at 103.28, and despite dropping to 102.72 in the immediate aftermath of the Fed taper call, spot has made a new high at 103.66.

USD/JPY swings higher on taper decision

Overnight, Yen weakened, following the Nikkei higher following BoJ comments which indicated that further QE could be on the cards to purchase Government debt and help reach the 2% inflation target. Later in the day, Nikkei reported that officials had edged back from the fixed time limit to reach the 2% target, indicating that a sustained period of stimulus could be on the cards.However, the FOMC decision has been the highlight of the day, and the FOMC decision to hold rates but trim $5bln each from MBS and Treasury purchases, saw spot drop wildly in the first reaction, before regrouping to make a fresh weekly high. Spot is presently trading at 103.41.

USD/JPY Technicals

Hourly RSI sits at 64 and climbing, with ADX at 26 and neutral. The FXstreet.com propriatary OB/OS Index and Trend Index are overbought and slightly bullish respectively. Meanwhile the hourly 200 SMA sits at 102.94 while the daily 20 EMA is bullish at 102.11. Today’s pivot point can be found at 102.75, with the next support found at 103.3832 (R2) and 103.6463 (R3).
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