USDJPY – Down
USDJPY:
The Japanese yen (JPY) jumped to a two-week high against its U.S. counterpart on Wednesday amid speculation that Japan’s financial authorities stepped in again, for the second time in a week, to support the domestic currency. This came amid a sell-off in the US dollar (USD) following the FOMC meeting and took the USD/JPY pair to 153.00. The yen, however, trimmed some of its strong intraday gains and continued to lose ground during the Asian session on Thursday, bringing the currency pair back above the round figure of 156.00.
The Bank of Japan’s (BoJ) decision to keep interest rates at zero and an indication that it will continue to buy government bonds as recommended in March is a big divergence from the Federal Reserve’s (Fed) hawkish signal. In fact, the U.S. central bank said on Wednesday that it wants more certainty that inflation will continue to fall before cutting rates. This, along with some dollar buying, lends support to the USD/JPY pair amid a positive risk tone that undermines the safe-haven Yen.
Trading recommendation: Watch the level of 156.00, on a rebound take Sell positions. If consolidation is above, take Buy positions.
FreshForex offers a wonderful 300% bonus on every deposit of $100 or more, giving you the opportunity to increase your trading volumes!
You may check other analytical reviews on FreshForex website. Source: freshforex.com.
