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4 Feb 2015
USD/JPY rejected at 118 levels
FXStreet (Mumbai) - USD/JPY trades flat ahead of Europe open, wiping out gains from the Asian session after Bank of Japan’s (BOJ) Deputy Governor Iwata’s comments bolstered the yen.
Retests 118
Currently, the USD/JPY traded flat at 117.62 levels, bouncing off day’s high posted at 118 levels. USD/JPY erased previous gains as yen regained strength on BOJ’s Iwata’s statement that defended their monetary expansion in October and also maintained that uptrend in consumer prices remains intact despite sliding oil prices.
BOJ Iwata noted, "It takes time for monetary policy to affect prices ... But eventually, it's monetary policy that determines the broad price trend,"
"In a country that suffered from 15 years of deflation, it wasn't enough to say the BOJ will hit its inflation target in the medium-term perspective," "It's a more binding commitment than other central banks."
Earlier in the Asian session, the yen weakened versus the greenback after risk-on trades emerged after rsing oil prices lifted investor sentiments.
USD/JPY Technical Levels
To the upside, the next resistance is located at 118 levels and above which it could extend gains 118.50 levels. To the downside immediate support might be located at 117.50 levels, below that at 117 levels.
Retests 118
Currently, the USD/JPY traded flat at 117.62 levels, bouncing off day’s high posted at 118 levels. USD/JPY erased previous gains as yen regained strength on BOJ’s Iwata’s statement that defended their monetary expansion in October and also maintained that uptrend in consumer prices remains intact despite sliding oil prices.
BOJ Iwata noted, "It takes time for monetary policy to affect prices ... But eventually, it's monetary policy that determines the broad price trend,"
"In a country that suffered from 15 years of deflation, it wasn't enough to say the BOJ will hit its inflation target in the medium-term perspective," "It's a more binding commitment than other central banks."
Earlier in the Asian session, the yen weakened versus the greenback after risk-on trades emerged after rsing oil prices lifted investor sentiments.
USD/JPY Technical Levels
To the upside, the next resistance is located at 118 levels and above which it could extend gains 118.50 levels. To the downside immediate support might be located at 117.50 levels, below that at 117 levels.