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15 May 2015
USD/JPY faded below the 120 handle again
FXStreet (Guatemala) - USD/JPY is currently trading at 119.31 with a high of 119.93 and a low of 119.15.
USD/JPY is a fade again on the 119 handle where the rally was short lived shy of the 120 figure where supply met in the 119.90's. 119.20 supports despite yet further disappointments in the US data. The Reuters Michigan Sentiment arrived below expectations at 88.6 vs 96.0 consensus.
On the calendar next week, we have the FOMC Minutes on Wednesday 20th May. "The tone of the April FOMC minutes should be dovish", explained analysts at TD Securities, "Reflecting the Fed’s concern at the time about the weak growth and inflationary backdrop owing to the strong dollar. The market will be particularly interested in the discussions surrounding the timing for rate hikes. While we expect the Fed to keep all options on the table, we expect the balance of risks to shift in favour of a later start to liftoff than the previous June bias, but still solidify market expectations for a Sep/Oct bias."
Technically, we remain with a mixed outlook and we are trading within the same 120.82/84 resistance. We have the 120 handle being the December 2014 and the April high while bulls will be looking for a test of the 14 year downtrend at 122.07 through there. Through 119.15, to the downside, 118.80 and 118.40 come in as next key supports.
USD/JPY is a fade again on the 119 handle where the rally was short lived shy of the 120 figure where supply met in the 119.90's. 119.20 supports despite yet further disappointments in the US data. The Reuters Michigan Sentiment arrived below expectations at 88.6 vs 96.0 consensus.
On the calendar next week, we have the FOMC Minutes on Wednesday 20th May. "The tone of the April FOMC minutes should be dovish", explained analysts at TD Securities, "Reflecting the Fed’s concern at the time about the weak growth and inflationary backdrop owing to the strong dollar. The market will be particularly interested in the discussions surrounding the timing for rate hikes. While we expect the Fed to keep all options on the table, we expect the balance of risks to shift in favour of a later start to liftoff than the previous June bias, but still solidify market expectations for a Sep/Oct bias."
Technically, we remain with a mixed outlook and we are trading within the same 120.82/84 resistance. We have the 120 handle being the December 2014 and the April high while bulls will be looking for a test of the 14 year downtrend at 122.07 through there. Through 119.15, to the downside, 118.80 and 118.40 come in as next key supports.