USD/JPY Bulls Making a Stand on the 110 Handle
USD/JPY
is making a slight recovery in the Tokyo opening hour, up to challenge
the 100 sma on the 15min time frame in a continuation of early Asia's
bid.
USD/JPY has otherwise been under immense pressure this
month, with risk aversion favouring the Yen for its safe haven status.
The fundamentals are somewhat skewed, however, while poor data in Japan
is fuelling the downside in equities and resulting in the Yen to
strengthen, while, at the same time, BOJ's Governor Kuroda was speaking
in a parliament committee and saying that he is willing to cut rates
further, yet there has not been a considerable reaction to that in the
price.
Meanwhile, for the day ahead, the calendar is otherwise
low key while we await the FOMC minutes from the Mar 15-16 meeting that
will be released in the U.S. shift. "This will give us more detail on
the debate of domestic and global risks. However, the market view on the
Fed should remain mostly shaped by Chair Yellen's speech last week,"
explained analysts at Westpac.
USD/JPY levels
With
the price testing the 100 sma on the 15 min sticks, but losing
momentum, turning to the 1 hours chart the price is through the 20 sma
and starting to erode the descending channel's resistance. A break here
towards the 111.00 handle could alleviate the immediate downside
pressures. However, on the 4hr sticks, the technical indicators keep
heading lower, as noted by Valeria Bednarik, chief analyst at FXStreet,
despite being in extreme oversold territory, in line with a continued
decline for this Wednesday.
(Market News Provided by FXstreet)