USD / JPY Trading Outlook
USD/JPY bounced up off the 80.85/70 support and has moved above 81.00. The critical zone is 81.10/20 and there is a preference to sell from here with profit targets eyed at 80.85 and 80.55 in extension. The fall in price overnight was due to the weaker than expected China GDP figure, 8.1% vs. 8.3%, causing JPY to strengthen on risk aversion
USD/JPY is ranging in 80.80 to 81.00/10 however technical analysts see the pair as under pressure and has a preference to sell at the top of the range from 81.10/20 with profit targets eyed at 80.80 followed by 80.55. Overnight rises came as speculators bought in the hope of more BoJ easing on April 27 but this move up quickly pared down after the price trade through 81.00.
USD/JPY tested 80.55/60 lows before reversing to 80.90 in the late Asia session. A number of attempts to take the pair below 80.60 were rejected with good buying noted at this level and according to some the BoJ or government related entities. Talk of long term fund buying were noted in the crosses as well. The technical analysis has a preference to sell this pair below 81.20 with profit targets eyed at 80.55.
USD/JPY came down overnight as the BOJ announced no change in policy and many investors are holding out for further easing on the 27th when the Policy Board next meets. The pair has fallen from 81.80 and is challenging the 81.05 support today, a break lower may pave the way to 80.80 and there is a preference to sell from 81.80.
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