Yen Hit One-and-a half-year High Despite Kuroda’s Statement
Apr, 07th 16:11
According to the FOMC meeting minutes released yesterday, the Federal Reserve now is keeping a cautious action on the interest rate hikes as the negative data came from the economic growth. The central bank is not likely to raise the rate in at least the next two months, betting against investors’ expectation on a rate hike in April’s meeting.
Fed’s statement last month stated that they may take action about two or three rate hikes before the end of the year. However, markets are showing a pessimistic view against the normalization road, and pricing in just one.
James Bullard from Fed on Wednesday said that the policy makers are seeking the solutions to push up the country’s economic situation. This indu so the tax, education and immigration systems might be reformed.
In response to the negative signals from the central bank, the buck tumble strongly as the dollar index DXY plunged to 94.239, the half-year lowest.
Today, in spite of the BOJ Kuroda’s statement of maintaining the monetary easing policy if needed, the yen surged up and hit the 17-month high, reinforcing its so-called “safe-haven”.
Fig. USDJPY H4 Technical Chart
USDJPY is extending the downtrend from March 29 as testing the resistance of 113.827. ADX stands at 67.5456, nearly reaching the level 70, indicating a strong selling power. The stochastics shows that USDJPY has dived in the oversold territory for a period of time but no clear signals for reversal given. The price is anticipated to edge down further before bouncing back to the bullish market.
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