17 Feb 2016
USD/JPY offered post dovish FOMC minutes
USD/JPY has dropped on the FOMC minutes that although painted an uncertain picture, Yellen has spoken about much of the concerns recently when she testified, so there wss not anything new in the minutes that markets had not already priced in.
The minutes explained oil, China, the dollar and financial markets in the context of a still strong labour market are a risk. Falling oil prices will keep inflation in check, but lower energy to consumers could offset the negative impact. The US dollar weighing on the manufacturing sector.
Financial markets main concern
Financial markets were the biggest concern of all. Tighter financial conditions are pushing up market volatility and creating downside risks to the economy. However, the economy is stronger than markets are suggesting. Monetary policy is data dependent.
Oil is the one to watch
Meanwhile, oil has been driving USD/JPY of late as risk is strongly correlated to the price action and news in the sector.
There was conflicting news on oil today driving the price back and forth, but the Iranian oil minister gave the commodity a boost later in the session and sees the price back above $30 bbl, supporting USD/JPY.
USD/JPY levels
USD/JPY felt headwinds at the 200 sma on the hourly chart earlier and had otherwise been contained in its recovery. The 200 sma currently stands at 114.34. While the risks continue to remain to the downside, if the price was able to continue to the upside, above 115.00 and the Feb 5th doji near 116.80 and the 20 dam at 116.84 guards118.00. To the downside, on a break of the 113.80 support and with closes, the next main target and round figure comes as the 112.00 ahead of 110.00 are the psychological levels. The pivot is at 114.15 with S1 at 113.41, S2 at 112.85 and S3 at 112.11.
USD/JPY felt headwinds at the 200 sma on the hourly chart earlier and had otherwise been contained in its recovery. The 200 sma currently stands at 114.34. While the risks continue to remain to the downside, if the price was able to continue to the upside, above 115.00 and the Feb 5th doji near 116.80 and the 20 dam at 116.84 guards118.00. To the downside, on a break of the 113.80 support and with closes, the next main target and round figure comes as the 112.00 ahead of 110.00 are the psychological levels. The pivot is at 114.15 with S1 at 113.41, S2 at 112.85 and S3 at 112.11.
The minutes explained oil, China, the dollar and financial markets in the context of a still strong labour market are a risk. Falling oil prices will keep inflation in check, but lower energy to consumers could offset the negative impact. The US dollar weighing on the manufacturing sector.
Financial markets main concern
Financial markets were the biggest concern of all. Tighter financial conditions are pushing up market volatility and creating downside risks to the economy. However, the economy is stronger than markets are suggesting. Monetary policy is data dependent.
Oil is the one to watch
Meanwhile, oil has been driving USD/JPY of late as risk is strongly correlated to the price action and news in the sector.
There was conflicting news on oil today driving the price back and forth, but the Iranian oil minister gave the commodity a boost later in the session and sees the price back above $30 bbl, supporting USD/JPY.
USD/JPY levels
USD/JPY felt headwinds at the 200 sma on the hourly chart earlier and had otherwise been contained in its recovery. The 200 sma currently stands at 114.34. While the risks continue to remain to the downside, if the price was able to continue to the upside, above 115.00 and the Feb 5th doji near 116.80 and the 20 dam at 116.84 guards118.00. To the downside, on a break of the 113.80 support and with closes, the next main target and round figure comes as the 112.00 ahead of 110.00 are the psychological levels. The pivot is at 114.15 with S1 at 113.41, S2 at 112.85 and S3 at 112.11.
USD/JPY felt headwinds at the 200 sma on the hourly chart earlier and had otherwise been contained in its recovery. The 200 sma currently stands at 114.34. While the risks continue to remain to the downside, if the price was able to continue to the upside, above 115.00 and the Feb 5th doji near 116.80 and the 20 dam at 116.84 guards118.00. To the downside, on a break of the 113.80 support and with closes, the next main target and round figure comes as the 112.00 ahead of 110.00 are the psychological levels. The pivot is at 114.15 with S1 at 113.41, S2 at 112.85 and S3 at 112.11.