The USDJPY is stretching toward the 200 day MA. BOJ Ueda speaking. | Forexlive
BOJ Ueda is on the wires saying:
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Optimism over U.S. economic outlook seems to be broadening somewhat
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We need to scrutinize further whether optimism over U.S. outlook is sustained
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BOJ still can afford to spend time scrutinising risks
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Recent yen falls driven partly by optimism over U.S. economic outlook
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When looking at fallout from weak yen on Japan’s inflation, we must look not just at yen moves but factors that are driving them such as market perceptions of U.S. economy
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Markets remain unstable, implied volatility is still quite high
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Policymakers continue to see good chance of soft landing in global economy, though some see divergence among countries
In the past Ueda has characterized on stable markets as market is where the BOJ would refrain from tightening the policy (a lower USDJPY).
Technically, the USDJPY is trading to a new session low at 151.548. In the process, the price is also stretching toward its 100-day moving average and 151.387.
Yesterday, the price moved above the 200 day moving average with not much trouble as dollar buying was in full force. The price extended toward the 61.8% retracement at 153.397 but came up short of that target. Today there has been rotation back to the downside
That move now has the price below the swing area at 151.86 and 151.937 (the yellow area and rednumbered circles), but coming up short of 200-day moving average at 151.37. The low price has reached 151.548 so far.
A move below the 200-day moving average retail more downside problem with the 100-day and 50% midpoint of the range since the July high coming in at 150.65 and 150.75 respectively.
Conversely, stay above the 200-day moving average and traders will refocus on the swing area above between 151.86 and 151.937.