USD/JPY Unfazed By BoJ, Weakness To Persist On Less-Hawkish FOMC

DailyFX Table

Ticker

Last

High

Low

Daily Change (pip)

Daily Range (pip)

USD/JPY

111.17

112.08

111.15

The near-term outlook for USD/JPY appears to be unfazed by the dovish comments coming out of the Bank of Japan (BoJ) as the pair slowly works its way back towards the June-low (108.80).

USD/JPY slips to fresh monthly lows even as the Bank of Japan (BoJ) now expects to achieve the 2% inflation-target in fiscal-year 2019, and the pair stands at risk of facing additional losses next week should the Federal Open Market Committee (FOMC) show a greater willingness to retain the current policy for the foreseeable future. Despite talks of unloading of the balance sheet, Chair Janet Yellen and Co. may attempt to buy more time amid the mixed data prints coming out of the U.S. economy, and the greenback may struggle to hold its ground in the second-half of the year as Fed Fund Futures continue to show a 50/50 chance for another rate-hike in 2017.

USD/JPY Daily

USD/JPY Daily Chart

Chart – Created Using Trading View

USD/JPY comes up against the near-term support zone around 111.10 (61.8% expansion) to 111.60 (38.2% retracement), but the near-term outlook remains tilted to the downside as both price and the Relative Strength Index (RSI) carve a bearish formation going into the last full-week of July.

Next region of interest comes in around 109.40 (50% retracement) to 109.90 (78.6% expansion)followed by the June-low (108.80), which sits just above the Fibonacci overlap coming in at 108.30 (61.8% retracement) to 108.40 (100% expansion).

Ticker

Last

High

Low

Daily Change (pip)

Daily Range (pip)

AUD/USD

0.7917

0.7959

0.7875