USD/JPY Fundamental Analysis Forecast For 25 May 2015
The USD/JPY dipped 24 points matching the decline in the US dollar while traders wait for a decision and announcement from the Bank of Japan which is concluding its two day meeting in just a few hours. The pair also closed at 121.523 this week.
The Bank of Japan concludes its two-day policy meeting later in the session and while the central bank is widely expected to stand pat on policy, with some focus on how it perceived GDP growth in the first quarter.
“There is little tension over the Bank of Japan policy meeting. Governor Kuroda and colleagues have sounded comfortable with the current policy stance and are likely to point to the slight upside surprise on Q1 GDP as further vindication,” Sean Callow, senior currency strategist at Westpac in Sydney, wrote in a note.
The dollar was little changed at 121.04 yen after losing 0.3 percent overnight to end a five-day winning run. The greenback scaled a two-month peak of 121.49 midweek on bets the currency was ready for a run higher after weeks in the doldrums.
U.S. existing-home sales declined 3.3 percent to a seasonally adjusted annual rate of 5.04 million in April from 5.21 million in the previous month, reported the National Association of Realtors on Thursday.
USD/JPY Technical Analysis Forecast For 25 May 2015
As you see on USD/JPY Daily chart, the parity is moving inside a channel horizontally and supporting its 80 days EMA for a while. USDJPY made a rise on Friday close to its support and top level of its trend lines upper band. The up pressure was about US data in Friday. According to us, as long as it stays over its 80 days EMA which is around 120, bullish pressure would continue. With the buy positions, 121.60 and 122 levels may be targeted. The possible corrections may bring usdjpy to 120.80, 120.30 levels. But over its 80 days ema, the falls may be valued as a small term corrections for traders.
USD/JPY Support and Resistance Levels for 25 May 2015
Pivot : 120,30
Support : 121,35 – 120,80 – 120,50
Resistance : 121,60 – 122,00 – 122,40
Upcoming Economic Events that you should be monitoring for usd/jpy in trading forex:
Monday, May 25, 2015
|United States – Memorial Day|
|Switzerland – Pentecost Monday|
|United Kingdom – Late May Bank Holiday|
|JPY||Exports (YoY) (Apr)||8.5%|
|JPY||Trade Balance (Apr)||229B|
Government Bond Auctions
Date Time Country
May 22 09:03 Sweden Holds bond exchange auction
May 22 10:00 Norway Details bond auction on 27 May
May 25 09:03 Sweden Holds bond exchange auction
May 25 15:30 Italy Announces details of BTP/CCTeu on 28 May
May 26 09:03 Sweden Holds bond exchange auction
May 26 09:10 Italy Auctions CTZ/BTPei
May 26 17:00 US Auctions 2-year notes
May 27 09:15 Norway Holds bond auction
May 27 09:30 Germany Eur 2bn 2.5% Aug 2046 Bund
May 27 09:30 UK Auctions 0.125% 2058 I/L Gilt
May 27 16:00 US Auctions 2-year FRNs
May 27 17:00 US Auctions 5-year notes
May 28 09:10 Italy Auctions BTPs/CCTeus
May 28 09:10 Sweden Holds inflation-linked bond auction
May 28 17:00 US Auctions 7-year notes