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.

 

EUR/USD

Supports 1.2470 1.2410 1.2375  | Resistance 1.2570 1.2605 1.2665

USD/JPY

Supports 116.40 116.00 115.75   Resistance 117.20 117.50 117.90

 



GBP/USD

Supports 1.5620 1.5590 1.5550  Resistance 1.5665 1.5700 1.5720

 

 

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