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Tuesday, 20 December 2016 17:31 Written by

Yen weaker as BoJ leaves policy unchanged

Daily Forex Market Preview, 20/12/2016

 

The Japanese yen was trading weaker against its peers in early Asian trading session today as the Bank of Japan left monetary policy unchanged as expected. The BoJ left the short term target rates steady at -0.10% while leaving the 10-year Japanese bond yield target at near zero. The central bank signaled that it would continue to buy the JGB's at the pace of 80 trillion yen a year. In the meeting, the BoJ also raised its assessment of the economy for the first time in a year noting that the economy is continuing its moderate pace of recovery.

 

USDJPY Intra-day Analysis

1 USDJPY H4 2012

USDJPY (117.65): USDJPY was seen rising after the BoJ's meeting as price continued to recover off the three day low posted yesterday at 116.54. On the 4-hour chart, the hidden bullish divergence is formed as USDJPY made a higher low while the Stochastics has printed a lower low. Price is likely to test the previous highs near 118.50, which could be breached leaving further upside in the short term. However, with the weekly chart showing a hidden bearish divergence, failure to breakout above 118.50 could signal near term weakness as USDJPY is likely to slide towards 114.00 where the initial support lies.

 

GBPUSD Intra-day Analysis

2 GBPUSD H4 2012

GBPUSD (1.2397): GBPUSD turned bearish yesterday as the price fell back to the $1.2400 support level. However, with the daily Stochastics seen signaling a bullish crossover off the oversold levels, the near term bias is towards the upside. On the 4-hour time frame, GBPUSD is seen consolidating near the 1.2400 handle. An upside breakout here could trigger further gains towards 1.2571 where resistance is likely to be established after price broke through this level last week.

 

AUDUSD Daily Analysis

3 AUDUSD D1 2012

AUDUSD (0.7255): AUDUSD extended the declines from last week, posting a four-day losing streak. The bearish flag pattern remains in play with the downside target to 0.7225 followed by 0.7079. Price action remains within reach of the first downside target to 0.7225 which forms the support zone near 0.7225 - 0.7183. A short term rebound off this level could signal near term upside back to the previous support which could now turn to resistance at 0.7340.

 

Source:www.orbex.com

 

Read 193 times Last modified on Tuesday, 20 December 2016 17:31

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