FXStreet (Guatemala) – USD/JPY is currently trading at 123.42 with a high of 123.82 and a low of 123.13.
USD/JPY has gathered back the 123 handle having posted first losses in three weeks as we approach the close. Fundamentally, we remain with the divergences between the BoJ and the Fed still, however, analysts at TD Securities note that there are other developments taking place though. “After a 67% rally off the all time lows, USD/JPY may no longer be the best way to express macroeconomic and policy divergence versus the Fed in light of the other fundamental changes underpinning the yen.”
One fundamental shift however that has recently come about was with the Bank of Japan’s Governor Haruhiko Kuroda. He sent currency market participants into a frenzy this week when he launched what seemed to be a concerted round of verbal support for the JPY.
The blemish on the technical landscape, as the analysts explained, is the fact that the USD has failed once again to hold gains through the 2007 high of 124.14 and that short-term (intraday and daily) trend momentum studies are turning much less supportive. “A period of range trading may be in store from here as the USD regroups. We look for support around 121.80/122 near-term and resistance at 124.00/15.”
(Market News Provided by FXstreet)