Sasha Singh
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USDJPY : Investors Betting For More Stimulus by BOJ

USDJPY got some strength during Asian session after the Bank of Japan’s monetary policy meeting minutes were released. In the minutes, the board members said that it will be appropriate for the Bank of Japan to continue its quantitative and qualitative easing according to the current guidelines. This fueled the expectations among investors that the central bank might implement additional stimulus measures in future although it was not mentioned in meeting or by the board members. Japanese Yen weakened after the release, but for the short term only.

 On the hourly chart of USDJPY we could see that the pair is trading within a downtrend sloping channel. The pair found resistance from the resistance trend line and currently falling towards the support trend line. On the other hand upbeat US data also weighed on the pair and added some gains to the pair. Today US PPI data is coming out which might help the pair break this channel otherwise it will continue to trade within this.