- Summary:
- USDJPY trades 0.12% lower today after BOJ left its interest rate policy unchanged, as widely expected, and maintained its guidance of extremely low rates
USDJPY trades 0.12% lower today after BOJ left its interest rate policy unchanged, as widely expected, and maintained its guidance of extremely low rates at least through spring next year. The Bank of Japan added it would ease “without hesitation” if the economy growth loses momentum for achieving the BOJ’s 2% inflation target. Japan Unemployment Rate came in at 2.3% below expectations of 2.4% in June. Japan Industrial Production (MoM) came in at -3.6%, below expectations (-2%) in June, while Industrial Production (YoY) registered at -4.1%, below expectations of -1.6%.
Japanese government revised downward the GDP growth for 2019 from 1.3% to 0.9%; for FY 2020 real GDP growth estimate stands at 1.2%, while for 2019 consumer inflation estimate stands at 0.7%.
USD continues with positive momentum as traders looking for a 25 basis point interest rate cut by Fed on Wednesday.
USDJPY managed to break above the 50 day moving average last Thursday giving the bulls the upper hand for the short term. Immediate support for the pair stands at 108.47 the 100 hour moving average while extra support will be met at 108.16 the 200 hour moving average. On the upside first resistance stands at 108.94 the daily high and then at 108.98 the high from July 10th while a break above can drive prices up to 109.68 the 100 day moving average. The 108.47 mark is a critical level now, long positions can be opened as long as the pair trades above that figure but stop loss orders must be placed at 108.31 as if the pair breaks below sellers will step in. Bears can initiate a short position if the pair breaks below 108.38, targeting the 108 zone.Don’t miss a beat! Follow us on Twitter.