FXStreet (Guatemala) – USD/JPY is trading at 122.66 with a high of 123.22 and a low of 122.55.
USD/JPY is trading with a bearish bias in to the close for the week, while the greenback lacks demand due to the recent revaluation of the Fed’s funding rate for 2016/17 that was reported in the FOMC statement this week, who have downgraded their forecasts by 25 basis points while Yellen explained that the inflation target is out of reach for now despite a bullish economic outlook.
The BoJ stuck to their path and their programme while suggesting that inflation will support USD/JPY going forward, although for now markets are latching on to the Central banks view that USD/JPY is toppy around the 125 mark which has been weighing on the major since this was first voiced by Kuroda last week.
USD/JPY is technically soft
Technically, Analysts at TD Securities explained that USD/JPY retains a soft undertone on the charts while holding just about within the confines of last week’s trading range.
“Downside pressure is building on the intraday studies…Note that daily trend momentum is flattening out while the shorter-term studies are tracking more negative readings…Important support remains 121.90/00. Weakness below here targets 120 or just below. Major resistance remains 124.10/15.”
(Market News Provided by FXstreet)