Kuroda drives USD/JPY to hourly 50-MA support

BOJ’s Kuroda, while speaking on Comprehensive Assessment" of the Monetary Easing: Concept and Approaches, talked about the bank’s limited ability to monetize debt, thus sending the USD/JPY pair lower to hourly 50-MA support of 103.56.

Offered above 104.00

The spot clocked a high of 104.14 before deflation on Kuroda’s comments. Kuroda does not agree with the view that monetary policy is reaching its limits, but did state there are limits to what BOJ can do with respect to debt monetization.

The USD/JPY pair appears to have turned the corner over the last couple of weeks. Hence, the timing of Kuroda’s comments is slightly surprising given he risks derailing the recovery in the pair.  

USD/JPY Technical Levels

The spot currently trades around 103.60. Acceptance below hourly 50-MA of 103.56 would open doors for 103.00. A violation there could see the spot test demand around 102.65 (Aug 8 high). On the higher side, breach of 104.00 would shift risk in favor of a rally to 104.32 (Friday’s high) and 105.31 (100-DMA).