Ahead of the BOJ monetary policy statement, the yen was lower against the USD, EUR & GBP at yesterday's session. We expect the BOJ to maintain its stance on the monetary policy meeting. The drop in oil prices leads to lower inflation. We expect it will be highlighted at today's meeting. From the US side, US FOMC meeting minutes, PPI, and building permits are due. At yesterday's session, the yen lost approx 75 pips against the USD. The 20Dsma held twice and helped to push the prices higher. We still recommend buying at 177.70 with the targets at 120.50. Now, we are expanding targets. The prices closed above the larger symmetric triangle with an inner ascending triangle.
The pair has near resistance between 120.75 and 120.50. The pair made a double top at 120.50. Another strong upswing will take place only above 120.80 with the targets at 121.80, 123.00, 124.00, and 124.50 which is an ultimate target. The pair has intraday support at 119.80, intraweek support is set at 118.55. Until the pair holds and trades above 118.50, use every dip to buy. The intraweek support is at 118.68 and 118.24. Use any dip to buy with sl at 118.20.
Resistance: 119.50, 120.50, 120.80.
Support: 119.10, 118.80, 118.20.
Fresh buying above 119.50.
US dollar. The US dollar fell against the Euro after the weak manufacturing data. The headline general business conditions index edged down two points to 7.8. The new orders index dropped five points to 1.2. Today, traders are keeping an eye on US, PPI, and building permits. From the CAD point of view, wholesales data is due. The fall in oil prices will affect the retail sales data. The pair has parallel support at 1.2350. If the price breaks and closes below 1.2350, we can confirm the near term capped at 1.2800. We recommend selling only below 1.2350 with the targets at 1.2250 and 1.2220 initially. The intraweek trading pattern is framed between 1.2500 and 1.2350. Until the prices close above 1.2350, bulls try to challenge above 1.2500 and 1.2700.
Selling below 1.2350.
Strong momentum above 1.2500.
Uitgevoerd door, Analytische expert
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