In case you missed it, Eamonn made headlines earlier:
The government tried to deny the reports via Matsuno here, but that’s soft and the rumors wouldn’t swirl if there wasn’t some truth to it. This tends to be the case when it comes to Japan and the BOJ at least.
For now, it’s the relative uncertainty that’s making markets a bit more nervous – in case the BOJ decides to back away from its ultra-dovish stance and adopt a more hawkish pivot. As of the reports, there are no suggestions yet as to what the changes might be, but with rising inflationary pressures, it’s likely lawmakers and policymakers will try to address this issue.
USD/JPY is now down 0.4% at 136.15, with the downside opening gap still defended by the 200-day moving average (blue line):
The upside push late last week failed to clear recent resistance at the 23.6 Fib retracement level at 137.94 and this remains the key level to watch if buyers want to attempt to claim a breakout on the rise.
Otherwise, we might see price action caught in a slight tussle between the two key levels for now. Further support is then seen closer to 135.00 and then the December 2 low at 133.61. There is also some short-term resistance in the form of its 100 and 200 hourly moving averages for today, seen at 136.31 and 136.55 respectively now.
Not all news on the site expresses the views of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
