FXStreet (Guatemala) – USD/JPY is currently trading at 123.42 with a high of 123.47 and a low of 123.35.
USD/JPY is opening in Tokyo offered by a small margin of pips vs the minor recovery on business overnight is shallow vs the losses from above 123.60 that took the bulls out down to 123.28. We had trade numbers out prior to the open that were not favourable to the economy and while we await the FOMC and BoJ as main events for the week for the major.
USD/JPY caution over BoJ
Key from the BoJ will be the press conference and whether the value of the Yen will be a topic for discussion, no doubt, and that could be an opportunity for the BoJ officials to clarify whether the market has misinterpreted recent suggestions that the Yen is too weak.
USD/JPY consolidated between 119.73 / 124.20
Technically, as noted by Karen Jones, chief analyst at Commerzbank, there is no resistance of note has been overcome, which leaves the market still downside corrective. “The intraday Elliott wave counts have neutralised, which suggests that we may simply consolidate. Nearby support lies at 122.04, the March high and this guards121.01 the 55 day ma.”
Karen Jones added, “We notice the rather large divergence on the weekly chart and for now will revert to neutral medium to longer term. Intraday rallies are indicated to terminate circa 124.20. Key support is considered to be the 5 month uptrend at 119.73 and while above here we remain bullish.”
(Market News Provided by FXstreet)