The Japanese Yen recovers ground across the board, following the comments from the BoJ Governor Kuroda. We now discuss more on this from the 7 December USDJPY Technical Forecast.
7 December, GKFX - The USDJPY pair is seen keeping its range-trade intact in the late-Asian trades, having faced a stiff resistance near the midpoint of 112 handle.
- USD maintains the upbeat tone.
- Yen regaining ground on BoJ Kuroda’s comments.
- Japan’s final GDP, US NFP in focus.
BoJ Governor Kuroda's speech
The spot remains better bid but is lacking further upside momentum easing last hours, as the Yen recovers ground across the board, following the comments from the BoJ Governor Kuroda. In his speech, Kuroda sounded committed to achieving its dual objective of achieving 2% price target and economic development, while saying that the central bank has necessary tool engineer a smooth exit from the QQE programme.
BoJ’s Kuroda: BOJ will do whatever it takes to achieve mandates
BoJ’s Kuroda: The CPI is likely to increase moderately
Moreover, a consolidative phase is seen in the US dollar across its main competitors near the 2-week tops of 93.62, also reflects the stalled upside seen in the USD/JPY pair, despite the risk-on rally seen in the Japanese stocks, with the Nikkei 225 index rising +1.20% to 22,450 levels.
However, the sentiment around the major remains underpinned amid higher Treasury yields, as the greenback continues to benefit from the US tax optimism. Investors now gear up for the much-awaited US payrolls data due tomorrow. In the meantime, the US weekly jobless claims and risk trends will continue to drive the prices.
7 December USDJPY Technical Forecast
Jim Langlands at FX Charts writes: “As before, a nimble stance is required, with the short-term momentum indicators looking a mixed, while the dailies are leaning slightly higher now and buying dips is preferred for the medium term. Look for a range of 111.65/112.80 to cover it today, with further consolidation likely ahead of the US Jobs report, Friday. A break of good support at 111.60 may lead to stops being triggered and lead the dollar back towards 110.85/111.00 although I don’t see it happening today.”
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