USDJPY Technical Forecast

BOJ news did not have a longlasting impact on the pair as it clocked a high of 109.09 before falling back to 108.80 levels. Dig into the 31 January USDJPY Technical Forecast for more updates.

31 January, GKFX – The Bank of Japan (BOJ) increased the purchases of bonds maturing in 3-5 years by JPY 30 billion, but the resulting Yen weakness was transient.

Key Quotes

  • BOJ boosts short-term JGB purchases.
  • But the resulting Yen weakness was short-lived.
  • Yen ignores comments from BOJ officials
  • Eyes Trump speech.

USD/JPY clocked a high of 109.09 before falling back to 108.80 levels. BOJ news did not have a longlasting impact, possibly because this was a routine operation and as the bank said earlier this month, such minor tweaks do not reflect a policy change.

Also, the Japanese Yen is paying no heed to dovish comments from BOJ’s Kuroda and Iwata.

That said, the pair seems to have built a base below 108.80 levels amid oversold technical conditions, and hence could retake 109.00 levels. However, a lot depends on what President Trump says in his first state of the union address.

31 January USDJPY Technical Forecast

The upward potential seems limited short-term, as in the 4 hours chart, the price remains well below bearish moving averages, as the RSI indicator consolidates around 44. The Momentum in the mentioned chart heads higher around its mid-line, but further gains are more likely on a break above the 109.20/30 region, where sellers are now aligned.

Support levels: 108.60 108.25 107.90

Resistance levels: 109.25 109.70 110.10


This article 31 January USDJPY Technical Forecast 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.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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