As the dust settles from last week’s Bank of Japan stimulus revamp, currency traders have been slowly pushing the yen higher, toward a test of some key technical levels. The USD/JPY cross tested its 50-day moving average, about 110.89, from where it rebound and now is reversing, but the price remains locked below the resistance of about 111.5.
The market should interpret BOJ's actions as a signal that the central bank will not maintain long-lasting low interest rates and is therefore likely to bet on a stronger yen.
Chart: Used with permission of Bloomberg Finance L.P.
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.