Key Levels in the USD/JPY Ahead of the BOJ
Rowan Crosby • 1 min read
Today is a busy day for the Yen. We’ve already seen a host of data and now we have the BOJ.
A quick look at what has come out of Japan today:
- Industrial Production was stronger at 1.2%.
- Retail Sales weak at -0.7%.
- Inflation a touch lower than we might like at 0.5%.
- Jobs were in-line with expectations.
So overall a mixed bag of data. There is likely to be no change from the BOJ in all different areas including rates, bond purchases etc. Kuroda’s Press Conference will be of most interest for any signals as to what might be changing.
The key level of interest to the upside is now 109.81. Then we have the round number at 110.00 and above that 110.50.
To the downside we are going to be looking at 109.00, 108.60 and beneath that there is really plenty of room down to 107.00.
In my opinion, we are getting driven by the USD at the moment and that’s across the board. We are seeing rising treasury yields and the USD is outpacing most majors.
That said in trade on Thursday the JPY was the strongest ahead of the USD.