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6 Feb 2013
Forex: USD/JPY erases daily gains
The USD/JPY is trading at the lower band of the trading range drawn during the European session, around the opening price of 93.63, with a Doji daily candlestick, having erased all gains made during the Asian shift to as high as 94.06.
BoJ's Sato called for a new level of action to reach the 2% inflation target, focused on a kind of monetary policy able to affect exchange rates. The most recent USD/JPY rally was triggered by BoJ Governor Shirakawa's decision to leave his duties earlier than expected.
“There is no doubt that Prime Minister Shinzo Abe will appoint an ultra-dove to enforce his views on monetary policy. Even though the central bank has not been sovereign for some time the appointments are likely to create further pressure for JPY”, wrote Commerzbank analyst Lutz Karpowitz, expecting further USD/JPY rally if the new BoJ governor starts the unlimited purchase of bonds before 2014, the current scheduled date.
“With the recent break through 93.16 the uptrend has been renewed and although current intraday bias is negative, signaling a minor corrective pattern towards 93.10, the overall outlook is still bullish, for 95.00”, wrote Deltastock.com analyst Stoyan Mihaylov.
BoJ's Sato called for a new level of action to reach the 2% inflation target, focused on a kind of monetary policy able to affect exchange rates. The most recent USD/JPY rally was triggered by BoJ Governor Shirakawa's decision to leave his duties earlier than expected.
“There is no doubt that Prime Minister Shinzo Abe will appoint an ultra-dove to enforce his views on monetary policy. Even though the central bank has not been sovereign for some time the appointments are likely to create further pressure for JPY”, wrote Commerzbank analyst Lutz Karpowitz, expecting further USD/JPY rally if the new BoJ governor starts the unlimited purchase of bonds before 2014, the current scheduled date.
“With the recent break through 93.16 the uptrend has been renewed and although current intraday bias is negative, signaling a minor corrective pattern towards 93.10, the overall outlook is still bullish, for 95.00”, wrote Deltastock.com analyst Stoyan Mihaylov.