USD/JPY: Downside Towards 106.63 to Play for
is threatening the commitments of the bulls below the 108 handle still
and the Yen retains the top spot on the board after yesterday's BoJ
As analysts at Westpac explained, "USD/JPY had been at 111.70 when the Bank of Japan announced that it was not loosening policy, sparking a collapse to 109, which extended to just under 108.00 in New York, the yen about 3% stronger over the day." However, most significant is where the analysts highlighted, "If nothing else, Governor Kuroda has demonstrated that weakening the yen is *not* a priority for the BoJ, consistent with his long-standing rhetoric.
Greenback out of vogue on a number of counts - FXStreet
If that is not enough for a case for the downside, the U.S. economy is apparently slowing down leaving the greenback's bulls compromised on the back of the GDP data released overnight.
U.S. GDP Q1 reviewed: slowdown in momentum - Nomura
USD/JPY's failures at the 55 day moving average at 111.87 and subsequent sell-off has exposed the 107 handle and the price in fact made lows of 107.85 guarding the 10th of April low of 107.63 where Karen Jones, chief analyst at Commerzbank suggests is reinforced by the 106.63 38.2% Fibonacci retracement of the move up from 2012 and the 200 month moving average at 105.86. "This is expected to underpin the market," she explained.