Bank of Japan’s (BOJ) decision to reduce the purchases of long duration Japanese government bonds (JGBs), though a routine operation, seems to have strengthened the bid tone around the Japanese Yen. Meanwhile, how is the USDJPY pair trading today? Learn this from the 28 February USDJPY Technical Analysis.
28 February, GKFX – The USD/JPY, which was already on the back foot, extended the decline to a fresh session low of 107.15 after the BOJ news. As of writing, the spot is trading at 107.20 – down 0.45 percent from the overnight high of 107.68.
The pullback could be associated with a 299 point drop in the US stocks and the retreat in the US 10-year treasury yield from 2.92 percent to 2.82 percent.
The decline could be extended further if the stock markets in Asia and Europe respond negatively to Powell’sunambiguously positive comments on the economy. Further, the USD may run into offers if the US fourth-quarter GDP is revised significantly lower than the estimated downward revision to 2.5 percent from the advance estimate of 2.6 percent.
28 February USDJPY Technical Analysis
US$ JPY seems to be building a base and managed to spend the entire day above the daily Tenkan (106.70), adding confidence to further upside momentum. I prefer to buy dips to 107.00, looking for a run up to 107.90 and possibly higher. If we can crack 108.00 we may head towards 108.35. Downside stops should be placed under 106.70.
This article 28 February USDJPY Technical Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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