USD/JPY with Mark Jensen
By Mark Jensen, FBS analyst
USD/JPY recovered to 102.70 as risk appetite rose after the Bank of Japan’s decision to extend and expand lending programs. For the second time the pair found support around the 100-day MA and at the bottom of the daily Ichimoku Cloud.
The BOJ maintained its upbeat economic assessment, suggesting no further easing steps are on the near-term horizon. However, it seems that the tax increase is having a large negative effect on Japanese economy, so the markets may start pricing in further easing in April.
Chart. Daily USD/JPY
Resistance lies at 102.85, 103.40 and 104.00 (top of the daily Cloud, upper daily Bollinger band). Support is at 102.00, 101.53, 101.30 and 100.75.
If the bulls manage to overcome 102.85, the bulls will have good chances of testing 104.00. Note that the pair may be trading in a triangle manner – this is a common tendency for USD/JPY. Decline below 101.50 will make me go short.
Chart. H4 USD/JPY