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28 Feb 2013
Forex: USD/JPY bouncing off lows, around 92.25/30
After dipping to sub 92.00 levels, the cross has now regained the handle and trading back to the 92.25/30 region, following the lack of direction in the global markets.
“So the stage is set for a Kuroda/ Iwata/ Nakaso BoJ leadership from March 19. Key for us will be how much the BoJ increases the Asset Purchase Program for this year AND next year at the April 3/4 meeting. Failure to lift both will continue the current retracement in USD/JPY. We maintain a sell bias on both USD/JPY”, suggests Sean Callow, Strategist at Westpac.
At the moment, the cross is up 0.01% at 92.24 with the next resistance at 92.68 (high Feb.28) ahead of 92.75 (high Feb.26) and then 92.81 (Tenkan Sen line).
On the downside, a penetration of the psychological level at 92.00 would expose 92.59 (Kijun Sen line) and finally 91.14 (low Feb.27).
“So the stage is set for a Kuroda/ Iwata/ Nakaso BoJ leadership from March 19. Key for us will be how much the BoJ increases the Asset Purchase Program for this year AND next year at the April 3/4 meeting. Failure to lift both will continue the current retracement in USD/JPY. We maintain a sell bias on both USD/JPY”, suggests Sean Callow, Strategist at Westpac.
At the moment, the cross is up 0.01% at 92.24 with the next resistance at 92.68 (high Feb.28) ahead of 92.75 (high Feb.26) and then 92.81 (Tenkan Sen line).
On the downside, a penetration of the psychological level at 92.00 would expose 92.59 (Kijun Sen line) and finally 91.14 (low Feb.27).