USDJPY spiking lower USDJPY spiking lower
USDJPY was trading above 104 levels and prices have corrected towards our target of 100 levels. USDJPY fell further yesterday, sliding towards one year low due to the central banks tentativeness to adopt further easing measures. The pair made intraday low of 100.68 levels yesterday.
Japan Prime Minister announced massive monetary package with selective stimulus, which should have major impact on domestic economy. The package includes 13.5 trillion yen in fiscal measures and directs spending will about 7.5 trillion yen, most of it over the next two years.
Meanwhile, BOJ disappointed last week when it decided against increasing government bond purchases or further lowering negative interest rates. Other end, dollar index moved down in last couple of days due to losing hopes of rate hike this year, which is making downside pressure on USDJPY.
Going ahead, market participants will closely watch US Job data tomorrow for further indication of markets. Any downbeat US data could drag pair to lower levels. Technically speaking, the pair declined sharply after breaking support of 104 levels. If prices break next support of 100, it will slide towards 97 levels. Fail to break; we can see sideways action between 100 to 104 levels.
USDJPY was trading above 104 levels and prices have corrected towards our target of 100 levels. USDJPY fell further yesterday, sliding towards one year low due to the central banks tentativeness to adopt further easing measures. The pair made intraday low of 100.68 levels yesterday.
Japan Prime Minister announced massive monetary package with selective stimulus, which should have major impact on domestic economy. The package includes 13.5 trillion yen in fiscal measures and directs spending will about 7.5 trillion yen, most of it over the next two years.
Meanwhile, BOJ disappointed last week when it decided against increasing government bond purchases or further lowering negative interest rates. Other end, dollar index moved down in last couple of days due to losing hopes of rate hike this year, which is making downside pressure on USDJPY.
Going ahead, market participants will closely watch US Job data tomorrow for further indication of markets. Any downbeat US data could drag pair to lower levels. Technically speaking, the pair declined sharply after breaking support of 104 levels. If prices break next support of 100, it will slide towards 97 levels. Fail to break; we can see sideways action between 100 to 104 levels.