USD/JPY - dynamic rebound from support after BoJ speech
Last Wednesday there was another test of 116.40 level, but supply wasn't stopped and tried attack at 116.00. As a result USD/JPY reached to a year's low of price. Since December to last week's Thursday, Japan's yen strengthened. During this time price fell from 123.56 to 116.00. At pointed level dynamic rebound occurred and during three upward sessions led price to Fibonacci 38,2% of previous downward movement. The immediate cause of that rebound (which means weakened yen), was information from Bank of Japan. Governor of BoJ Haruhiko Kuroda said: "We won't hesitate adjusting policy, including easing policy, if necessary to achieve our 2 percent price target." Nearest BoJ meeting will be this week. Market's reaction was dynamic, Japanese stock market has gained and yen fell down.
In the chart USD/JPY reached first important resistance at 118.80 and a rebound occurred. If demand breaks above that resistance, next targets will be at: 120.60, 121.40, 123.50. However if declines continue, nearest supports will be at levels: 118.10, 117.60, 116.50.
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