USD/JPY: Yen hits fresh highs below 121.30 on BOJ Kuroda’s comments

[USD/JPY] Forex Investor Tips-

USD/JPY falls from below 121.37 levels

Currently, the USD/JPY traded unchanged at 121.34, quickly recovering from session lows posted at 121.29 post Kuroda’s comments. The yen strengthened to fresh session highs against the greenback post BOJ Kuroda’s speech which seems to be pro-yen as Kuroda seems optimistic on the overall Japanese economic recovery with wages expected to increase, price trend increasing steadily and indicators of consumer sentiment turning more positive.

Earlier in the session, USD/JPY remained unperturbed by BOJ’s policy decision as markets had widely anticipated that BOJ would keep its monetary policy unchanged. Meanwhile, traders now await US macro data later in the day for further momentum on the pair.

USD/JPY Technical Levels

To the upside, the next resistance is located at 121.67 (March 12 High)) levels and above which it could extend gains 122.03 (March 10 High) levels. To the downside immediate support might be located at 121 levels, below that at 120.24 (20-DMA) levels.

EUR/USD eyeing 1.0600

[EUR/USD] Forex Investor Tips-

 

“The EUR/USD pair witnessed the strongest rise in more than two weeks on Monday as it clocked a high of 1.0618 levels. The technical driven strength in the shared currency was further supported by the disappointing US data, upbeat comments from the ECB President Draghi and disappointing weekly QE purchases number announced by the ECB.”

“The central bank purchased bonds worth EUR 9.751 billion, which is considerably lower than the average EUR 15 billion per week required to achieve its EUR 60 billion per month target. Slow pace of purchases is Euro positive since it means liquidity is being injected at a slow speed.”

“Meanwhile, Draghi, in his speech, noted a sustained recovery in the Eurozone economy. However, caution ahead of the FOMC meeting made sure the pair gave up its gains to trade at 1.0560 levels at the time of writing.”

“A fresh demand for Euros can be anticipated in the range of 1.0530-1.0550, especially if the German Zew survey index prints an optimistic picture about the German economy. Moreover, a strong Zew number, coupled with a stability in the EU CPI in February would support upbeat comments made by Draghi yesterday. In such a case, we could see the pair make another attempt at 1.06 levels.”

“A break above 1.06 could see the pair rise to 1.0650, where a fresh selling pressure could emerge ahead of the FOMC meeting.”