USD/JPY Threatens Daily Triangle After Upbeat BoJ

FXOpen

The US Dollar (USD) fell broadly against the Japanese Yen (JPY) on Friday, dragging the price of USD/JPY to less than 101.30 following the release of the Bank of Japan (BoJ) monetary policy minutes. The sentiment remains bearish due to Lower Low and Lower High in the recent waves. The pair will remain directionless as far as the descending triangle formation is intact.

Technical Analysis

As of this writing, the pair is being traded near 101.32. A hurdle may be seen around 101.54, the 76.4% fib level ahead of 101.81, the trendline resistance as demonstrated in the following chart. A break and daily closing above the trendline resistance area could spur a renewed buying interest, validating fresh rallies above the 103.00 handle.

USD/JPY- Daily Chart

usdjpy-d1-

On the downside, the pair is expected to find a support near 100.82, the swing low of the recent correction wave as well as trendline support. A daily closing below the trendline support will open doors for a deeper correction below the 100.00 milestone.

BoJ Monetary Policy Minutes

The BoJ yesterday released minutes from the monetary policy meeting. The policymakers expressed satisfaction over the growth and inflation outlook and saw no need for further easing in the near future. Investors took the monetary policy minutes as hawkish that consequently spurred huge selling pressure in the price of USD/JPY.

CB Leading Indicator

The Conference Board (CB) is due to release the leading indicator report on Friday (today). According to the average forecast of different economists, the leading indicator remained steady at 0.5% in June as compared to the same reading in the month before. Generally speaking, higher leading indicator reading is considered positive for the economy, hence a better than expected actual outcome will be seen as bullish for USD/JPYY and vice versa.

Conclusion

Considering the overall technical and fundamental outlook, buying or selling the pair on a breakout through the daily triangle appears to be a good strategy in the long run. 

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

European Currencies Adjust to Support Levels: Is Growth Possible? NZD/USD Exchange Rate Falls from Nearly 5-Month High Market Analysis: GBP/USD and EUR/GBP Poised For More Losses Dollar Falls After Inflation Data: Is a Change in Medium-Term Trends on the Horizon? USD/CAD Retracts from Nearly 2-Month High

Latest articles

Forex Analysis

European Currencies Adjust to Support Levels: Is Growth Possible?

A week rich in macroeconomic data contributed to the decline of the euro, yen, and pound. Notably, the following events were significant:

  • Inflation falling for the second consecutive month (0.2% against the expected 0.3%);
  • The publication of the
Shares

Adobe's Stock Surges Approximately 15% After Report Publication

On June 5th in the article "Is ADBE Stock Undervalued?", we highlighted several bullish signs, suggesting that the report published on June 13th could be a driver for a resumption of the uptrend.

Adobe's report released on June 13th proved

Indices

Nikkei Index Falls Below 38,000 Points This Month for First Time

According to today's Nikkei 225 (Japan 225 on FXOpen) chart, the index quote dropped below 38,000 points at Monday's low, followed by a recovery (shown by an arrow).

One of the drivers of the decline was the automotive sector,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.