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25 Apr 2013
Forex: USD/JPY challenges support at 99.00
FXstreet.com (Barcelona) - The renewed strength in the Japanese yen is threatening to breach the 99.00 handle on Thursday. After dipping to Wednesday’s lows above 99.70 against the greenback, the yen initiated a correction lower to the current boundaries of 99.00.
In light of the next significant events in the Japanese economy, that is the inflation figures and the BoJ monthly gathering, the research team at BBH assessed, “The data will illustrate the challenge facing the BOJ which meets tomorrow… While the bank is unlikely to take fresh measures, it is expected to update its inflation forecasts. This should be understood as a signalling tool… The BOJ will anticipate the success of its program and lift the FY14 forecast to something around 1.5% and for FY15, it will likely introduce a forecast of near 2%”.
As of writing, the cross is retreating 0.37% at 99.15 and a breakdown of 98.99 (low. Apr.25) would aim for 98.64 (MA200h) and then 98.48 (low Apr.23).
On the other hand, resistance levels line up at 99.57 (high Apr.25) ahead of 99.90 (high Apr.22) and finally 99.95 (2013 high Apr.11).
In light of the next significant events in the Japanese economy, that is the inflation figures and the BoJ monthly gathering, the research team at BBH assessed, “The data will illustrate the challenge facing the BOJ which meets tomorrow… While the bank is unlikely to take fresh measures, it is expected to update its inflation forecasts. This should be understood as a signalling tool… The BOJ will anticipate the success of its program and lift the FY14 forecast to something around 1.5% and for FY15, it will likely introduce a forecast of near 2%”.
As of writing, the cross is retreating 0.37% at 99.15 and a breakdown of 98.99 (low. Apr.25) would aim for 98.64 (MA200h) and then 98.48 (low Apr.23).
On the other hand, resistance levels line up at 99.57 (high Apr.25) ahead of 99.90 (high Apr.22) and finally 99.95 (2013 high Apr.11).