As the Federal Bureau of Investigation (FBI) decided to probe Hillary Clinton’s emails again, USD weakened on Friday and USDJPY fell sharply. FBI’s James Comey said that FBI will conduct further investigation to find out whether those emails contain top secret materials or not.

However, rebound on USDJPY was seen on Monday. Market’s focus turned to the BOJ’s policy meeting.

After announcing assets purchasing scheme, BOJ probably will not change its monetary policy on Tuesday. However, the central bank might lower its inflation projection which potentially will give negative impact on yen.

Technical Analysis:

Intraday bias for USDJPY currently is bearish. MA 20 has crossed below MA 50 on hourly chart. However, both MA are rather flat. Our intraday key resistance is within 104.815-105.086. For today, I plan to look for sell signal confirmation on a pull-back move to within the resistance area with target at 104.648 and 104.378 in extension.

Be very careful if the price managed to break resistance at 105.086 because it will turn the intraday bias into bullish and possibly will push USDJPY higher to 105.253-105.523.

Trading Plan:

– Sell on bearish signal confirmation within 104.815-105.086; target at 104.648 or 104.378


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