The Japanese Yen Is Buoyant As The BOJ Maintains Policy

• 23 Jan 2018

USD/JPY

The USD/JPY pair is testing the 111.063 price level as the pair experienced some buying pressure early in the Asian trading session. Momentum indicators suggest that the previous bearish sentiment is coming to an end. Volume appears to be rising which may suggest buyers are beginning to drive price action. The next target for bulls will likely be the 111.74 price level.

GBP/JPY

The GBP/JPY pair has continuously touched the upper Bollinger band with a ‘hanging man’ candlestick in today’s trading session potentially indicating the top of the trend. At the same time, RSI has hit the 70 resistance line. With MACD stalling just above the zero line, there seems little momentum to push prices higher.

CHF/JPY

The Swiss Franc is approaching a significant resistance line at the 115.54 price level with the 20-period EMA currently acting as a support level. Each time in recent weeks when the pair has reached this price level, it has retraced.  Momentum indicators are mixed, however, which may suggest that buyers will run out of steam in an attempt to push prices higher.

CAD/JPY

The CAD/JPY pair is testing the 20-period EMA with noticeable buying pressure in today’s trading session. RSI is neutral whereas MACD indicates that momentum is bearish. The pair will likely continue to trade in a tight price range unless fundamental factors come into play.