Technically USDJPY (CMP:120.04) has to sustain above 120.50 for an immediate target of 122.05-122.50. Consecutive closing above 122.50, it may target 125.50-128.50-130 zone in the near term.
On the flip side, it has immediate support of 119.35 & sustain below that USDJPY may fall to 118.50-118.20 zone. Consecutive closing below 118.20, it may fall to 117-115.85-115.45
Bottom Line (Positional Cyclical Trading Levels):
115.45-116.15-117.25-118.20-118.50-119.35-120.50-122-125.50-128.50-130
Overall, BOJ is expected to continue its QE (Abenomics Policy) in the months ahead, until inflation rise above 2% to stimulate its own economy. On last Thursday, BOJ reduced its own economic growth & IMF warned Abe administration about very slow progress with its "Abenomics" plan.
Going ahead, as stagflation & slow industrial recovery is continued in Japan, BOJ has no option but to continue or even increase its QE.
On the other side, various data (although conflicting due to seasonal factors) indicates that US is clearly out of recession & is undergoing slow but steady recovery.
In any way, different cyclical data in US & FED chatters will keep the strength of USD under control and along with it, in reality, FED is in the side line (until 2015-16 ?) may keep this pair (USDJPY) in the broad range of 115-130.
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