USD/JPY - Sharply Up Due To Bank Of Japan Interest Rate Cut
FxGrow | Jan 29, 2016 06:12AM ET
USD/JPY - sharply up, due to Bank of Japan interest rates cut
Previous analysis, in which I indicated possibility of further BoJ policy easing and USD/JPY gains, was very profitable. I wrote: "USD/JPY reached first important resistance at 118.80 and rebound occurred. If demand breaks above that resistance, next targets will be at: 120.60, 121.40, 123.50". So it happened after BoJ decided to adopt negative interest rates. During 10 minutes period, USD/JPY moved sharply to 121.40 level.
Currently upward movement should continue. You have to note that at the chart there is a reversal head and shoulders pattern - it possible, target can be found near 121.75. However, earlier demand will have to break above resistance at 121.47. After that, next important resistance is at 122.51. If correction occurs earlier, falls will protect support at 120.50.
Time-frame H4
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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