USDJPY has a volatile up and down day as traders digest BOJ move(and other data this week)

Technical Analysis

The Bank of Japan met and eased their yield curve control on the 10 year effectively expanding their tolerance by a further 50 basis points to 1.0%.

That news – and the other news this week – has the pair moving back toward a neutral level after up-and-down-volatility. The pair is trading near the 38.2% of the range since the end of June high at 140.224, AND the 100 and 200-hour MAs at 140.517 and 140.25 respectively (see blue and green lines on the chart below).

That area (between 140.22 and 140.517) will be the barometer for traders in the short term at least. Move above is more bullish. Stay below is more bearish.

On a break above, the 50% midpoint of the range since the end of June at 141.149 would be targeted. Move above that in the high price from last week at 141.953, and the high price from this week at 141.844 would be targeting along with the 61.8% retracement at 142.07.

On the downside, an old swing area between 139.75 and 139.99 if broken would increase the bearish bias and have traders looking more to the downside.

Articles You May Like

Germany’s Thyssenkrupp pops 8% after narrowing net loss and booking $1 billion impairment charge
​Breakout Stocks: How to trade Aditya Birla Sun Life AMC, Federal Bank and Coforge on Thursday
Australian Consumer Confidence, weekly survey, comes in at 86.8 (prior 86.7)
Yen and Swiss Franc Climb as Ukraine War Intensifies on 1000th Day
Lowe’s beats on earnings and hikes guidance, but still expects sales to fall this year

Leave a Reply

Your email address will not be published. Required fields are marked *