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Forex: USD/JPY up on more Abe/BoJ saga

After the G20 meeting avoiding to criticize Japan's policies directly over the weekend, the USD/JPY rallied on Prime Minister Abe suggestion to the Parliament that he considers removing the BoJ’s independence should the central bank fail to achieve 2% inflation.

The upside found its high at 94.22 and eased back to 93.90/94.00 for some consolidation. As of writing, the market trades at 94.03 (+0.57% on the day).

"Overhead we have the 2010 high at 94.99 then the March 2009 spike low at 95.77. The TD resistance is 95.62", wrote Commerzbank analyst Karen Jones, pointing to supports at the 20 day ma at 92.16 and the 2 month up channel at 91.40, keeping the market immediately bid.

Forex: AUD/USD capped around 1.0300

The Australian dollar is following the rest of the high beta currencies on Monday, trading in the defensive territory as markets are favouring the risk aversion so far...
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Forex Flash: USD/JPY in focus after G20 verdict – UBS

The USD/JPY resumed its uptrend overnight in the wake of the weekend G20 statement, which made no explicit mention of Japan or the weakening yen. In fact, the right to use "monetary policy" to ensure "domestic price stability" was enshrined in the text. According to Research Analyst Gareth Berry at UBS, “That does not mean countries may exploit this as a vehicle specifically to influence exchange rates, however entrenched deflation in Japan would appear to provide justification enough for more easing.”
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