Weakening Dollar Sets up British Pound for 1.6017 Test
The Dollar/Yen declined in Asian trading overnight after getting an initial boost from what the Bank of Japan describes as a “comprehensive monetary easing”. Last night the BoJ unexpectedly cut its benchmark interest-rate range to between zero and 0.1% from 0.1%, and pledged to maintain its policy until prices stabilize. It also revealed it would implement a new asset-buying fund.
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USD JPY Consolidating; Could be Setting Up for Rally
The USD JPY is consolidating inside the retracement zone created by the 84.73 to 86.37 range. This zone is 85.55 to 85.35. If the market can form a support base then look for it to make a run at the swing top at 86.37. Not only will a breakout over this level turn the main trend to up on the daily chart, but it will also confirm last week’s weekly closing price reversal bottom.