29 Apr 2014
USD/JPY technicals mixed; BoJ an important one - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that the release of the BoJ’s economic outlook is key to understanding how the central bank will approach additional stimulus.
Key Quotes:
"Japan begins its Golden Week holidays. The release of the BoJ’s economic outlook is key to understanding how the central bank will approach additional stimulus (we expect that they will eventually turn towards it). Consensus expects the BoJ to maintain its outlook for inflation in tomorrow’s release—any shift will impact the outlook for USD/JPY and makes the announcement an important one."
"USD/JPY short‐term technicals: mixed as the MACD shifts to a buy signal but other studies warn of downside risk. We see USD/JPY as somewhat range bound and see better risk return elsewhere."
Key Quotes:
"Japan begins its Golden Week holidays. The release of the BoJ’s economic outlook is key to understanding how the central bank will approach additional stimulus (we expect that they will eventually turn towards it). Consensus expects the BoJ to maintain its outlook for inflation in tomorrow’s release—any shift will impact the outlook for USD/JPY and makes the announcement an important one."
"USD/JPY short‐term technicals: mixed as the MACD shifts to a buy signal but other studies warn of downside risk. We see USD/JPY as somewhat range bound and see better risk return elsewhere."