16 Feb 2015
USD/JPY: Back below bullish territory; Japanese GDP positive
FXStreet (Guatemala) - USD/JPY is currently trading at 118.66 with high of 118.80 and low 118.53.
USD/JPY has opened with a heavy tone on the back of the GDP data, putting the economy back on track after two quarters of contraction. "A recovery would encourage the BoJ to maintain policy, given its already-large QQE program", explained Sean Callow, analyst at Westpac Banking Corporation.
GDP Annualized came in at 2.2% vs -2.3% previous. Meanwhile, not forgetting the bid tone around the greenback, it will be interesting to see how long the Yen can ride the recent sentiment in the market for officials on the BoJ who have recently given signs of concern over the weakness of the Yen. All has been said before although the concerns over QQE have been highlighted in brighter fluorescent this time around. We remain in the same long 2 month range, with 115.50 the long term support (mid Dec) and we are back off the 120 psychological level and back below bullish territory awaiting FOMC minutes this week as main event.
USD/JPY has opened with a heavy tone on the back of the GDP data, putting the economy back on track after two quarters of contraction. "A recovery would encourage the BoJ to maintain policy, given its already-large QQE program", explained Sean Callow, analyst at Westpac Banking Corporation.
GDP Annualized came in at 2.2% vs -2.3% previous. Meanwhile, not forgetting the bid tone around the greenback, it will be interesting to see how long the Yen can ride the recent sentiment in the market for officials on the BoJ who have recently given signs of concern over the weakness of the Yen. All has been said before although the concerns over QQE have been highlighted in brighter fluorescent this time around. We remain in the same long 2 month range, with 115.50 the long term support (mid Dec) and we are back off the 120 psychological level and back below bullish territory awaiting FOMC minutes this week as main event.