Japan Finance Minister Mira Katayama says:
- Ready to take decisive action on forex
BOJ Ueda says:
- Latest GDP data are mostly in line with our forecast, Middle East situation has begun to impact.
- Need to closely monitor signs on upward price pressure.
- Aware that long-term interest rates are rising rapidly.
- When asked about BOJ tapering plans, will assess market situation, functionality.
- Will take appropriate monetary policy to achieve inflation target.
The USDJPY has dipped on the latest news, but the pair remains above the day’s low near 158.64. That keeps sellers from taking full control for now, but the downside levels are clearly defined.
The first key target comes at yesterday’s low near 158.60, followed by the rising 100-hour moving average at 158.529. A break below that area would increase the short-term bearish bias and give sellers more confidence.
That said, there would still be more work to do. The next downside hurdles would be the 158.00 level, followed by the rising 200-hour moving average at 157.835. A move below those levels would be needed to tilt the broader short-term bias more firmly in favor of the sellers.
