The picture on the chart of USDJPY is less negative in February so far compared to last quarter although this symbol’s reaction to the latest job report was significantly weaker compared to gold. Speculation on the new leadership of the Bank of Japan from April increased earlier this month, with news being reported yesterday that Kazuo Ueda is likely to be nominated as the next governor. Dr Ueda might be less dovish than the ‘default’ candidate, Masayoshi Amaniya, but this probably wouldn’t translate into a very clear change in policy by the Bank of Japan in the near future.
With dollar-yen having moved back above the 50 SMA from Bands and intraday sellers being overpowered last week, the 100 SMA slightly above ¥136 could be the next important resistance. To the downside, a move below ¥127 is unfavourable with that area having been a support since the second quarter of last year. As above, waiting for the actual figure for inflation and trading based on the direction of the main reaction to it would usually be preferred to trying to find a position immediately.
With dollar-yen having moved back above the 50 SMA from Bands and intraday sellers being overpowered last week, the 100 SMA slightly above ¥136 could be the next important resistance. To the downside, a move below ¥127 is unfavourable with that area having been a support since the second quarter of last year. As above, waiting for the actual figure for inflation and trading based on the direction of the main reaction to it would usually be preferred to trying to find a position immediately.