FxWirePro: USD/JPY hits fresh multi-month lows at 107.07, on track for 106.80
Yen bulls relentless after yesterday's BoJ showdown, where the Bank of Japan announced that it was not loosening policy, largely disappointing markets. Adding to the bearish bias was a subdued US dollar on the back of th…
Yen bulls relentless after yesterday's BoJ showdown, where the Bank of Japan announced that it was not loosening policy, largely disappointing markets.
Adding to the bearish bias was a subdued US dollar on the back of the GDP data released overnight.
US GDP growth slowed to 0.5% from Q4 2015’s 1.4%, as compared with consensus projection of 0.6% growth, the slowest quarterly rate since Q1 2014.
On a year-on-year basis, the economy grew 1.9%, as compared with 2% growth seen in Q4 2015.
Governor Kuroda has demonstrated that weakening the yen is *not* a priority for the BoJ, consistent with his long-standing rhetoric.
We see no respite from bears for now, 106.64 which is 38.2% Fib retrace of the move up from 2012 is next likely target.
On the downside supports are seen at 107, 106.80 (Week ended Sept 20 2015 low) and then 106.64 which is 38.2% Fib retrace of the move up from 2012.
