Monday, October 28, 2019

USD/JPY

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Fundamental Highlights


The Yen lost some ground last week, following headlines related to the BOJ’s future monetary policy. According to those, policymakers are considering lowering their forecast for economic growth and inflation this year. Therefore, market participants are speculating Kuroda & Co. will pave the way for additional stimulus, hurting the Japanese currency even more. Additionally, US Treasury yields edged higher on Friday and US Equities posted substantial gains at the end of the week. This bullish mood on this pair will likely resume this week until a major headline changes the sentiment.

Technical Analysis

The Dollar-Yen is slowly grinding higher after price broke above the Bullish Flag pattern as well as the 50-day moving average, signaling potential further gains on this pair. The bulls are currently targeting the recent highs 108.9 were price might find a bit of resistance. The bears, however, need to close below 108.45 to change the market sentiment and tilt the odds into their favor.

Support: 108.70 / 108.45
Resistance: 108.90 / 109.05

Chart (H4)

USDJPY