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Bfs Forex: In the short term, USD/JPY, or there is a risk of falling to 110

November 28, by the Federal Reserve and the Bank of England to further tighten monetary policy prospects, the recent strong JPY led to the USD/JPY fell to the bottom of this year's broad range of 110.00-115.00, JPY has also become the best performing this month G10 One of the currencies. In addition, there are preliminary signs that the Bank of Japan may tighten monetary policy next year to benefit JPY.

Bank of Tokyo-Mitsubishi currency analyst Lee Hardman, points out that the recent JPY strength against JPY, USD fell to the wide range of 110.00 to 115.00 at the bottom of this year, JPY has also become one of the best performing G10 currencies this month, in part because investors for foreign central Banks, such as the fed and the bank of England to tighten monetary policy further prospects more cautious.

Especially the federal reserve meeting minutes released last week showed that the central bank will raise concern about inflation remains subdued Earlier this month, speculative JPY hit in mid - 2015 at 125.80 against JPY/USD price of the highest level since the peak.

Currency analysts discussed the short-term outlook for the USD/JPY, arguing that the risk of a price drop to 110 would be blocked at 112.50.

Japanese exporters and investors have been putting pressure on the USD/JPY and Japanese investors have been cautious about persistent currency hedging, and buying securities does not support a weaker JPY.

In addition, there are some initial signs that the Bank of Japan may tighten monetary policy in 2018 and benefit JPY too. The Bank of Japan has begun to slow down the pace of buying Japanese bonds, and its policy has turned its attention to yield curve controls. Bank of Japan officials said in a recent speech that the central bank began to consider fine-tuning the yield curve control.

Japan's central bank governor, Mr. Kuroda in Switzerland earlier this month to measure the nature of the yield curve comment he mentioned the concept of low interest rates of some negative effects, mention reversal rate, reverse rate refers to when the effect of the monetary easing from growth to inhibit the growth of interest rates.

Technical Analysis

Japan's data is expected to show optimism will be released this week, or will support the market's expectations of the bank of Japan policy normalization Thus, even if JPY selling and a stronger USD also will not play supporting role Japan in the near future is expected to face downside risk, but any upward trend will not beyond 112.50 level.

Continue their slide against JPY, USD yesterday, briefly fell below 111.00 psychological barrier, this is for the first time since September 18, because the us Treasury yields fell and weak risk weigh on the currency's mood.

The short-term risk of the USD/JPY is still biased towards the downlink, the finishing is technically within the range of 111.40 to 111.10, the price fell below 111.10 support is expected to retreat to near 110.80 again, again the broken has opened the door fell to 110 psychological barrier.

On the other hand, at 111.40, the price can be considered in order of the suppression of the interval of 111.68 and 111.94-112.00.


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