FXWIREPRO: USD/JPY Edges Higher from Fresh Multi-Month Lows at 109.95
- USD/JPY hit fresh multi-month lows at 109.94, it was seen below the 110 mark in Oct 2014, when the BoJ surprised markets with extra easing measures.
- The pair came under renewed pressure after WSJ reported PM Abe saying “we must definitely avoid competitive devaluation, and I think we should refrain from arbitrary intervention in currency markets.”
- USD/JPY slipped from 110.50 to a low of 109.95 after the comments, has pared losses to edge above the 110 handle.
- BOJ's Governor Kuroda was speaking in a parliament committee and saying that he is willing to cut rates further, yet there has not been a considerable reaction to that in the price.
- Pair remains rangebound on the day, with immediate support at 109.94 (Apr 5th lows) and further below at 109.91 (trendline).
- On the upside resistance is located at 111.24 (5-DMA) ahead of 111.35 (Apr 5th highs).
- Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-slips-below-111-handle-to-hit-fresh-3-week-lows-at-11078-189212) has hit all targets.
- Focus remains on the FOMC minutes release amid an otherwise data-empty US session.
- We would reamain on the sidelines for now as Techs are inconclusive.
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