USD/JPY - Dynamic Rebound From Support After BoJ Speech
FxGrow | Jan 25, 2016 07:31AM ET
USD/JPY - dynamic rebound from support after BoJ speech
Last Wednesday there was another test of 116.40 level, but supply wasn't stopped and tried attack at 116.00. As a result USD/JPY reached to a year's low of price. Since December to last week's Thursday, Japan's yen strengthened. During this time price fell from 123.56 to 116.00. At pointed level dynamic rebound occurred and during three upward sessions led price to Fibonacci 38,2% of previous downward movement. The immediate cause of that rebound (which means weakened yen), was information from Bank of Japan. Governor of BoJ Haruhiko Kuroda said: "We won't hesitate adjusting policy, including easing policy, if necessary to achieve our 2 percent price target." Nearest BoJ meeting will be this week. Market's reaction was dynamic, Japanese stock market has gained and yen fell down.
In the chart USD/JPY reached first important resistance at 118.80 and a rebound occurred. If demand breaks above that resistance, next targets will be at: 120.60, 121.40, 123.50. However if declines continue, nearest supports will be at levels: 118.10, 117.60, 116.50.
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.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.