Focus on the Japanese Jen

A small move up is characterizing the USD/JPY cross which is currently trading at 113,67 (+0,22%) after all the datas coming from Japan which are not completely on the same line: the unemployment rate went up to 3,3% (from 3,2%), while the Job Seekers Index remains flat at 1,28. Far from the expectations the household spending and the retail sales, respectively at 1,2% (-1,9% expected) and 0,5% (consensus at 1,6%).

A Nikkei article at the same time, describes the Japanese government ready for new stimulus at the private sector, with a FY16 supplementary budget which will affect also the economy and the labour market of the construction sector.

Regarding the european currency, the Yen after having almost touched the 127,30 level overnight, is now resized to trading almost flat at 127,00. The EUR/JPY is benefitting from the 4th consecutive positive session, while the downside movement of the Yen against both the counterparts, EUR and USD, is the consequence of the rumors regarding an additional easing from the BOJ which could lower the rates in the short term (bringing the market to short the Japanese currency).

EURJPY 29mar

Looking at the technical analysis, the breaking of the EUR/JPY resistance at 128,35 (61,8% Fibo between 121,98 and 132,30) could bring the pair to 128,91 and even 130,00. In case the cross will revert his movement, the most important support for a rebound is set at 125,90.

On the other side, considering the american currency the first resistance is set at 113,82 even if the mixed and volatile movement of the cross is keeping me staying flat, considering the actual move could be just a corrective rebound which could extend to 114,00 and even 114,50. This movement is bringing up all the supports, which now are set to 113,00 and 112,50.

USDJPY 29mar

Important events for today: the Yellen speech at the Economic Outlook and Monetary Polici at the Economic Club in New York. I’m expecting from the Fed president conservative tones, following the hawkish statements from other policy makers of last week.

 

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