USD/JPY extends rally above 114.50 in calm session

Get real time updates directly on you device, subscribe now.

  • DXY turns positive and rises for the second day in a row.
  • US holiday favors USD/JPY consolidation.
  • The Bank of Japan will announce its decision on Tuesday.

The USD/JPY is rising on Monday, trading above 114.50, supported by a stronger US dollar gaining G10 currencies. The pair is having its best day since early January as it continues to recover from the monthly low reached on Friday at 113.45.

In a quiet session, which includes a US holiday (Martin Luther King Jr.), the dollar shows some strength on a day without new information. European equity markets are slightly higher and so are US equity futures.

On Tuesday, the Bank of Japan will announce its decision on monetary policy. No changes expected. “While no change in policy is expected, the leaks suggest there will be some modest improvements in the bank’s inflation outlook in its new Outlook Report forecasts. Other reports suggest that the BOJ is debating how to prepare the markets for an eventual lift-off, but we find it extremely difficult to believe that the bank is actually serious about tightening. Officials are playing with fire here as this will add to the yen’s strong momentum,” Brown Brothers Harriman analysts explained.

levels to see

The strong rebound weakened the bearish bias and technical indicators now favor the consolidation of an extension of the recovery. A drop below 114.00 could increase bearish pressure again, exposing first 113.75 and then 113.50. USD/JPY reached a high of 114.58 on Monday. Immediate resistance is seen at 114.70 and then at the 115.00 area.

Additional technical levels


Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

buy kamagra buy kamagra online $255 payday loans online same day no denial payday loans direct lenders only