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20 Dec 2013
USD/JPY holds above 104.00 ahead of BoJ
FXstreet.com (Córdoba) - The USD/JPY posted marginal gains on Thursday but it was unable to reach new highs during the European and the American session. The pair peaked at 104.36 and currently trades near the highs at 104.20, a hundred pips above the price it had at the beginning of the week.
In the coming hours, the Bank of Japan will decide on monetary policy. Expectations are for no change in the interest rate and in the monetary base objective. The USD/JPY waits for event in a small trading range, moving with an upside bias in the short-term.
Technical outlook for the USD/JPY
Valeria Bednarik, Chief Analyst at Fxstreet.com affirms that the 4 hours chart indicators “are showing signs of exhaustion after reaching overbought readings, albeit not showing any directional strength either”. According to Bednarik, support levels lie at 104.10,103.70 and 103.35; while resistance at 104.35, 104.70 and 105.00.
In the coming hours, the Bank of Japan will decide on monetary policy. Expectations are for no change in the interest rate and in the monetary base objective. The USD/JPY waits for event in a small trading range, moving with an upside bias in the short-term.
Technical outlook for the USD/JPY
Valeria Bednarik, Chief Analyst at Fxstreet.com affirms that the 4 hours chart indicators “are showing signs of exhaustion after reaching overbought readings, albeit not showing any directional strength either”. According to Bednarik, support levels lie at 104.10,103.70 and 103.35; while resistance at 104.35, 104.70 and 105.00.