Wednesday, February 27, 2019

FX USD/JPY treads water around 110.60 amid early-day silence

The pair remains less active since the day start as fewer events remained present to entertain momentum traders.

It should be noted that the pair refrained from declining further as comments from the BoJ Governor Haruhiko Kuroda and the overall recovery in the US Dollar favored the pullback. 

 Best currency pair which most profitable in forex

While political developments are might help retain the JPY’s safe-haven allure, expected an increase in monthly pending home sales figures to +0.2% from -0.1% earlier contraction, coupled with likely +0.5% rise in monthly factory orders versus -0.6% previous, could support the USD.

Looking forward, the second day of the Fed Chai Jerome Powell’s testimony and monthly second-tier statistics like pending home sales and factory orders are left to determine near-term market moves.



USD/JPY Technical chart
Unless clearing 111.30-40 resistance-region that comprises of 200-day simple moving average (SMA), chances of the pair’s pullback to 110.30 and 50-day SMA level of 109.85 can’t be turned down.
Alternatively, pair’s ability to cross 111.40 can help it aim for 112.00 with 111.60 and 111.80 likely acting intermediate halts during the rise.

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