Kuroda’s Dovish Comments Fail to Lit a Fire Under USD/JPY
Kuroda’s Dovish Comments Fail to Lit a Fire Under USD/JPY
Bank of Japan’s (BOJ) Kuroda tried to weaken Yen but stating readiness to do more but failed as the USD/JPY pair remains weak around 107.80 levels.
Weak Treasury yields restrict USD demand
The
dollar side of the strong is not helping the pair either. The long
duration and short duration treasury yields are trading weak and that is
capping demand for the US dollars. As of writing, the 10-yr yield was
down almost 2 basis points.
Meanwhile, Yen bears have little
reason to try and catch the falling knife as most policymakers at BOJ
seem to agree that further easing at the moment is not required and may
not result in Yen weakness.
USD/JPY Technical Levels
The
immediate resistance is noted at 108.38 (hourly 50-DMA), above which
gains could be extended to 108.82 (5-DMA). A break higher would expose
109.27. On the other hand, a break below 107.63 (daily low) would shift
risk in favor of a drop to 107.00. A violation there would expose 106.64
(38.2% of 2011 low-2015 high).
(Market News Provided by FXstreet)
