USD/JPY fades spike above hourly 200-MA

USD/JPY pair breached the hourly 200-MA hurdle of 102.46 and clocked a high of 102.61 only to fall back to the hourly 200-MA level.

The minor spike in the pair was triggered by comments from Japanese PM Advisor Hamada suggesting there is room for further monetary easing in Japan. Hamada expressed possibility of depending of the negative rates or expansion of the QQE program and also remains in favor of foreign QE.

However, comments like this are a regular feature and hence the resulting reaction in the markets is dull. Similar calls for more BOJ action hit the wires yesterday due to which the pair clocked a high of 103.36 before ending the day on a negative note around 102.40.

USD/JPY Technical Levels

Failure to hold above the hourly 200-MA level of 102.46 would expose support at 102.18 (descending trend line coming from Jan 29 high and May 30 high). A violation there could yield 101.42 (Tuesday’s low). On the higher side, breach of 102.74 (Tuesday’s high) could see the pair revisit 103.09 (Pivot R1) and 103.36 (Sep 14 high).