6 Aug 2015
USD/JPY June peak in its sights
FXStreet (Guatemala) - USD/JPY is currently trading at 124.73 with a high of 124.97 and a low of 124.53.
USD/JPY has been consolidating the upside of the rally when the ISM Non Manufacturing was printing its highest since 2005 yesterday. We now await the BoJ and Nonfarm Payrolls for further catalysts for a direction in the major.
It is widely expected that the BoJ this week will likely stay on hold and maintain an upbeat assessment of the economy and will remain data-dependent with an easing bias, keeping JGB yields low for the rest of the year. Lee Hardman, currency analyst at the Bank of Tokyo Mitsubishi UFJ explained that Governor Kuroda is unlikely to give any strong intention at this stage in mid-summer.
So turning to Nonfarm Payrolls, markets are looking for 225k or at least above the psychological 200k mark for a positive indication for hiking rates in September. "The non-farm payroll report may support USD/JPY's rise near the recent high at 125.86 from the 5th June. Yet, Japanese policy makers may try to limit further USD/JPY upside beyond," - Lee Hardman.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
USD/JPY technically looking for June peak
Technically, Karen Jones, chief analyst at Commerzbank explained that Wednesday rally took it back to the 125.00 area, to slightly below the 125.07 June 2 high. "Once bettered, the June peak at 125.86 will be back in the picture, followed by the May 1997 high at 127.48. We will retain our weekly bullish forecast while the 123.01 late July low underpins."
USD/JPY has been consolidating the upside of the rally when the ISM Non Manufacturing was printing its highest since 2005 yesterday. We now await the BoJ and Nonfarm Payrolls for further catalysts for a direction in the major.
It is widely expected that the BoJ this week will likely stay on hold and maintain an upbeat assessment of the economy and will remain data-dependent with an easing bias, keeping JGB yields low for the rest of the year. Lee Hardman, currency analyst at the Bank of Tokyo Mitsubishi UFJ explained that Governor Kuroda is unlikely to give any strong intention at this stage in mid-summer.
So turning to Nonfarm Payrolls, markets are looking for 225k or at least above the psychological 200k mark for a positive indication for hiking rates in September. "The non-farm payroll report may support USD/JPY's rise near the recent high at 125.86 from the 5th June. Yet, Japanese policy makers may try to limit further USD/JPY upside beyond," - Lee Hardman.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
USD/JPY technically looking for June peak
Technically, Karen Jones, chief analyst at Commerzbank explained that Wednesday rally took it back to the 125.00 area, to slightly below the 125.07 June 2 high. "Once bettered, the June peak at 125.86 will be back in the picture, followed by the May 1997 high at 127.48. We will retain our weekly bullish forecast while the 123.01 late July low underpins."