The new leadership of the BoJ will determine the market’s expectations about the monetary policy that the Bank of Japan could adopt in the future. OCBC economists discuss how each contender could affect the USD/JPY pair.
Bullish momentum likely slowed
“Daily momentum is bullish, but the rise in the RSI has moderated. Bullish momentum likely to have slowed“.
“Resistance at 133.20 (23.6% Fibonacci retracement from October high to January low) should provide decent resistance before the 134.50 level.”
“He support is at 131.00 (before the gap up) and 130.00 (21-day SMA) and 127.50 (minimum of double floor)”.
” This week the focus will be on the boj nominee list which is likely to go before parliament on February 10, although there are reports suggesting a delay until next week. Amamiya’s appointment would be very supportive of USD/JPY, while Yamaguchi’s appointment could weigh on USD/JPY. Ito and Nakao could see a gradual normalization of policy and could also weigh on USD/JPY, but to a lesser extent.“.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
