- USD/JPY was up on Fixing demand, up from 112.27-30, all the way up to 112.65-66 on Japnaese year end fixing demand.
- US dollar broadly firmer, found some support after positive ADP numbers overnight and optimism from Fed Evans.
- Gov Haruhiko Kuroda said that govt has not declared escape from deflation. As there is still risks that prices may fall again.
- Kuroda says BoJ will continue QQE with negative rates as long as needed to meet price target of 2%. He added that there are no limits or obstacles to BoJ's monetary policy.
- The pair has retraced from highs of 112.66 and is currently trading around 112.40. Downward bias intact.
- On the data side, Japan will release housing start data. Market anticipates -2.2% fall m/m vs 0.2% m/m previous release.
- Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-breaks-trendline-support-at-11295-good-to-sell-rallies-186205) has hit targets 1&2.
- We advise booking partial profits, and hold for next target. Bearish invalidation above 113 levels.
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