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USD/JPY – Yen Flat Ahead of BOJ Decision

USD/JPY has started off the new week quietly, with the pair trading in the low-103 range in Monday’s European session. In economic news, Japanese Leading Indicators missed the estimate, dropping to a six-month low. Later in the day, we’ll get a look at Current Account. The sole US event of the day is Consumer Credit.

On Friday, all eyes were on US Non-Farm Payrolls, one of the most important economic indicators. The indicator rose nicely last in March, climbing to 192 thousand, compared to 175 thousand a month earlier. However, the markets were looking for more, with the estimate standing at 199 thousand. The Unemployment Rate also fell short of the estimate, as it remained unchanged at 6.7%. Although these numbers were not as strong as hoped, the Federal Reserve is expected to continue trimming QE when it meets at the end of April.

In Japan, the BOJ will conclude its policy meeting and issue a monetary policy statement early on Tuesday. The markets are not expecting the BOJ to change its current annual increase of 60-70 trillion yen. With deflation largely under control, the most pressing economic issue facing the Abe government is the huge debt. The government is expected to implement measures to boost growth in the summer, so we could see the BOJ add monetary stimulus at that time.

 

USD/JPY for Monday, April 7, 2014

Forex Rate Graph 21/1/13

USD/JPY April 7 at 13:10 GMT

USD/JPY 103.14 H: 103.34 L: 103.00

 

USD/JPY Technical

S3 S2 S1 R1 R2 R3
100.00 101.19 102.53 103.30 104.17 105.70

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

USD/JPY ratio is pointing to gains in long positions in Monday trading. This is not consistent with the movement of the pair, as the yen has recorded slight losses. The ratio now has a slight majority of long positions, indicating a slight trader bias towards the dollar moving higher.

USD/JPY has started out the week quietly and the pair is steady in the European session.

 

USD/JPY Fundamentals

*Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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