24 Jul 2015
USD/JPY: Bulls taking back control in bull channel
FXStreet (Guatemala) - USD/JPY is currently trading at 123.95 with a high of 123.99 and a low of 123.85.
USD/JPY has started out on the bid in Tokyo with the majority of the trader's reluctant to lose the 124 handle with the major down on the overnight sessions, post an initial bid and rally up towards the 120.20 spot in the charts.
The US day came in with some upbeat jobs market data when the jobless claims dropped to its lowest level since Nov 1973. There is a lack of drivers today as we head into the the close, nothing domestic for Japan to take note of while HSBC Manufacturing PMI (Jul) from China tonight will be the driver and then we have New Home Sales data for June as well as Markit Manufacturing for July from the US to close the sessions down.
Meanwhile, the IMF has warned Japan that it needs to "reload" its Abenomics reforms or risk slowing growth, "stagflation" and turmoil in financial markets, as reported in the FT.
"The economists also told the Bank of Japan to be ready to ease monetary policy further and do a better job of communicating its intentions to markets as inflation — which they forecast would hit 0.7 per cent this year — continued to rise more slowly than expected towards the central bank’s 2 per cent target. Overall, the IMF offered a sobering assessment of prime minister Shinzo Abe’s efforts to revive the economy, arguing that his reforms were failing to deliver as promised."
USD/JPY technically remains in bull channel
Technically, should the downside play out, the 20 day ma at 123.12 stands as a target and cloud support comes in at 122.18. We are bullish territory above here and targets are set at on the 127.70 level within the bullish channel.
USD/JPY has started out on the bid in Tokyo with the majority of the trader's reluctant to lose the 124 handle with the major down on the overnight sessions, post an initial bid and rally up towards the 120.20 spot in the charts.
The US day came in with some upbeat jobs market data when the jobless claims dropped to its lowest level since Nov 1973. There is a lack of drivers today as we head into the the close, nothing domestic for Japan to take note of while HSBC Manufacturing PMI (Jul) from China tonight will be the driver and then we have New Home Sales data for June as well as Markit Manufacturing for July from the US to close the sessions down.
Meanwhile, the IMF has warned Japan that it needs to "reload" its Abenomics reforms or risk slowing growth, "stagflation" and turmoil in financial markets, as reported in the FT.
"The economists also told the Bank of Japan to be ready to ease monetary policy further and do a better job of communicating its intentions to markets as inflation — which they forecast would hit 0.7 per cent this year — continued to rise more slowly than expected towards the central bank’s 2 per cent target. Overall, the IMF offered a sobering assessment of prime minister Shinzo Abe’s efforts to revive the economy, arguing that his reforms were failing to deliver as promised."
USD/JPY technically remains in bull channel
Technically, should the downside play out, the 20 day ma at 123.12 stands as a target and cloud support comes in at 122.18. We are bullish territory above here and targets are set at on the 127.70 level within the bullish channel.