Japan: Trillions of yens
Christophe Chevalier May 25, 2020 7:35 AM
The Japanese government is said to finalize a fresh Y100 trillion coronavirus relief package.
On Friday, the Bank of Japan announced plans to start a new 75 trillion yen lending program in June, to support coronavirus-hit businesses, while keeping its benchmark rate at -0.1% and 10-year government bond yield target at about 0% unchanged. Meanwhile, it is reported that the Japanese government is finalizing a fresh Y100 trillion coronavirus relief package.
From a technical point of view, on an intraday chart, USD/JPY remains within a bullish channel. Readers may therefore consider the potential for further rise as the nearest resistance would be set at May 21 top at 107.85 and a second one would be set at horizontal resistance at 108.00 in extension. Any break below 107.50 would lower the bullish potential and would lead to a weakness towards strong horizontal support at 107.30.
Source: TradingView, GAIN Capital
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.