BoE helps the pound advance

<p>The USD/JPY is taking the centre stage again today after yesterday’s confirmation of a sales hike delay by 18 months due to the shock recession […]</p>

The USD/JPY is taking the centre stage again today after yesterday’s confirmation of a sales hike delay by 18 months due to the shock recession in Japan and a snap election called in December.  Today we heard the BoJ monetary statement and it was unchanged which gave USD/JPY another push higher into new fresh  seven-year highs. We are currently trading above 117.50 and the upward trend is still firmly intact.

The pound is not to be overshadowed in the session, with the MPC votes in as expected for the asset purchases and the two hawks still voting for an early rate rise. The pound reacted well and took off touching highs of 1.5700, so far being met with resistance at that level.

Tonight the volatility will go up a notch as we hear the FOMC minutes; this will give us a good insight to see how the decision to end the QE programme was taken across the board. This could be strong for the USD as they will be confident that it was the right decision to make.  On the other side of this, the US is currently enduring freezing temperatures and from last time this happened we had a spate of bad data as the weather affects data numbers.



Supports 1.2470 1.2410 1.2375  | Resistance 1.2570 1.2605 1.2665


Supports 116.40 116.00 115.75   Resistance 117.20 117.50 117.90



Supports 1.5620 1.5590 1.5550  Resistance 1.5665 1.5700 1.5720



Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.