8 Apr 2015
USD/JPY: sell on upticks, target 118.00 – Growth Aces
FXStreet (Barcelona) - Previewing the BoJ Policy statement, the Growth Aces Research Team maintains a bearish outlook on USD/JPY, going short on pair targeting 118.00 levels.
Key Quotes
“The Bank of Japan stuck with its massive monetary stimulus programme today, as widely expected. The central bank maintained that consumer prices are temporarily depressed by cheaper oil, and will gradually rise as consumers and businesses spend more and the economy recovers further.”
“BOJ Governor Haruhiko Kuroda said there is no change to our stance of aiming to achieve 2% inflation at the earliest date possible, with a timeframe of two years in mind.”
“Board member Takahide Kiuchi, who has expressed concerns that massive money printing could sow the seeds of a future bubble, called for the BOJ to cut back its asset buying. He proposed reducing the base money target, and the annual pace of increase in the BOJ's government bond holdings, to JPY 45 trillion. The proposal was rejected by an 8-1 vote.”
“Investors are focused on the April 30 meeting, when the Japanese board will review its long-term projections and may further cut its inflation forecast.”
“In our opinion the BOJ will take no additional action and such a scenario should support a slight fall in the USD/JPY in the medium term. However, there are still some investors that believe the BOJ policymakers will accelerate its quantitative easing and these expectations may result in higher levels of the USD/JPY in the very short term.”
“We are the opinion that any USD/JPY upticks should be used to get short on this pair.”
“Resistance: 120.45( high Apr 7), 121.20 (high Mar 20), 121.41 (high Mar 17)”
“Support: 119.45 (low Apr 7), 118.71 (low Apr 3), 118.34 (low Mar 26)”
“USD/JPY: sell at 121.20, if filled – target 118.00, stop-loss 122.50, risk factor **”
Key Quotes
“The Bank of Japan stuck with its massive monetary stimulus programme today, as widely expected. The central bank maintained that consumer prices are temporarily depressed by cheaper oil, and will gradually rise as consumers and businesses spend more and the economy recovers further.”
“BOJ Governor Haruhiko Kuroda said there is no change to our stance of aiming to achieve 2% inflation at the earliest date possible, with a timeframe of two years in mind.”
“Board member Takahide Kiuchi, who has expressed concerns that massive money printing could sow the seeds of a future bubble, called for the BOJ to cut back its asset buying. He proposed reducing the base money target, and the annual pace of increase in the BOJ's government bond holdings, to JPY 45 trillion. The proposal was rejected by an 8-1 vote.”
“Investors are focused on the April 30 meeting, when the Japanese board will review its long-term projections and may further cut its inflation forecast.”
“In our opinion the BOJ will take no additional action and such a scenario should support a slight fall in the USD/JPY in the medium term. However, there are still some investors that believe the BOJ policymakers will accelerate its quantitative easing and these expectations may result in higher levels of the USD/JPY in the very short term.”
“We are the opinion that any USD/JPY upticks should be used to get short on this pair.”
“Resistance: 120.45( high Apr 7), 121.20 (high Mar 20), 121.41 (high Mar 17)”
“Support: 119.45 (low Apr 7), 118.71 (low Apr 3), 118.34 (low Mar 26)”
“USD/JPY: sell at 121.20, if filled – target 118.00, stop-loss 122.50, risk factor **”