Instrument: USDJPY
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 142.841 with take profit at 143.329.
Bearish Preference:
Sell position is envisaged if price trades below 141.626 with take profit at 140.942.
Fundamentals:
JPY 3:15am- Monetary Policy Statement
JPY 7:30am- BOJ Press Conference
USD 1:30pm- Unemployment Claims
Comment:
The yen surged as the Bank of Japan intervened to support it in the foreign exchange market for the first time since 1998, only minutes after signaling it still doesn’t want to tighten monetary policy. The move is important because advanced economy central banks have largely given up on foreign exchange market intervention over the last three decades, allowing their currencies to float freely in line with market fundamentals. The yen’s fundamentals have been essentially negative this year, as the Bank of Japan has refused to raise interest rates, widening the premiums enjoyed by other currencies such as the dollar, sterling and even the euro.
Analysis: SCRUM Team