On Wednesday 8th April the Bank of Japan will conduct its April Monetary Policy Statement and Press Conference. Although the expectation is for no change in policy, deflationary risks that have been alluded to, could see an indication of additional Quantitative Easing.
USDJPY Technical Outlook is Positive within a Range
A bounce effort again from ahead of key 118.15 support, rejected a more bearish shift last week and the reversal of the trend line from March and above 120.37 sets a more positive range theme. This now places 121.20 in the cross-hairs for a more bullish shift into early/ mid-April.
- We see an upside bias for 120.60/65; break here aims for 121.20/22, which we would look to try to cap at first.
- But below 119.85 opens risk down to 119.50/44, which we would look to try to hold.
Short/ Intermediate-term Range Parameters: We see the broader range defined by 121.20 and 118.15.
Range Breakout Challenge
- Upside: Above 121.20 aims higher for the new 122.02 peak and to a key long term retracement at 122.45.
- Downside: Below 118.15 sees risk lower for 117.17 and 116.64.
4 Hour USDJPY Chart