On Friday 21, Mr. Kuroda, head of Bank Japan and monetary policy, gave heads up regarding current fiscal policy showing quantitative and qualitative easing affecting the yen but continue assessing negative interest rate policy and hinted that fiscal policy 2017 needs further revision. Mr. Kuroda has regularly expressed his commitment to achieve 2% inflation as soon as possible without specifying a date. Due to the uncertainty on the Japanese economy, the USD/JPY started a rally on Friday from 103.52 low and clocked 104.20 high.
On Asian trading sessions, the yen received positive news on trade balance and manufacturing PMI, as a result the USD/JPY took a break and dove to 103.72 as Japanese exporters supported the yen higher, then re-bounced to 103.99 high, given the US dollar index peeking to eight-month highs 98.85 in response to hawkish Fed speaks and election suspense. The USD/JPY currently trading at 103.84, the Japenese yen is still under pressure ahead of further local and US data.
Trend: Bullish
Key levels to watch: Daily Pp 103.84
First Resistance: R1 104.00, R2 104.32, R3 104.54, R4 104.79 H4
First Support: S1 103.63, S2 103.36, S3 103.15, S4 102.94
Remark: The trend in general is bullish due to US dollar pressure. Look forward of US economic news which will determine if the US dollar will extend its pressure on the Japanese yen or loosen up depending on the news outcome.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.