Japanese Yen Strengthens After Masai's Strong Tone On Behalf of BOJ
FxGrow | Nov 21, 2016 07:55AM ET
The confidence in Japanese yen currency seems to be favored and restored as USD/JPY reversed last weak's bullish trend to bearish in Monday's opening trading session. Japanese industrial activity scored 0.2% without a change in previous result, but with 0.1% increase than forecast, add to that strong tone of BOJ member Masai, expressing her take on the impact of a Trump-win on the Japanese economy as well on the central bank’s monetary policy program.
Last week, the US dollar soared the Japanese yen for 10 consecutive sessions, sending the pair from 101.19 low, to Friday's June-fresh-highs at 110.95 after strong US economic data all over the week. The pair opened with a higher price on Monday clocking 111.18, then retreated 110.54 low, currently trading at 110.74 intraday. Although market has witnessed some gains on USD/JPY, but the pair is considered to remain under strong US economy mercy.
Masai Key Headlines:
Hopes policies will also lead global economy
Hopes US government continues to take appropriate policies to drive growth
BOJ will watch what effect Trump will have on policy
Important to make sure intentions of BOJ policy are well understood to avoid volatility
Trend: Bullish
Key levels to watch: Daily Pp 110.99
Resistance: R1 111.38, R2 111.95, R3 112.35
Support: S1 110.50, S2 109.80, S3 109.27
Remark: USD/JPY still to be considered Bullish even if market has witnessed some bearish trend, but it's to be taken as short-term-correction. Look forward for US and Japanese economic data during the week which will determine ongoing price for USD/JPY.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
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