USD/JPY fades post-FOMC rally, falls on strong yen after BoJ

Posted On 30 Apr 2015

Tag: BoJ, EURUSD, GBPUSD, NZDUSD, USDCHF, USDJPY

USD/JPY tumbled in Asia after the Bank of Japan monetary policy announcement. The BoJ decided to maintain policy as is, keeping the monetary base expansion at 80 trillion yen a year. USDJPY opened in Asia at 119.00. The pair had rallied sharply late on Wednesday after the FOMC statement but the knee-jerk reaction in the dollar did not last long, especially since the Fed had a dovish outlook on the US economy. The stronger yen did not help either. By late Asian session trading the pair touched as low as 118.53. Markets will look forward to the BoJ press conference later today.

EUR/USD opened in Asia at 1.1127 after hitting a near one-month high of 1.1187. The pair slipped throughout the Asian session towards 1.1086. German unemployment data and Eurozone CPI data later today will be in focus, posing a risk to the euro.

GBP/USD was soggy but downside was limited. The Asian session saw a 1.5418-48 range. EUR/GBP consolidates after rally to 0.7225 on Wednesday. In Asia we saw a range of 0.7196-0.7208.

USD/CHF does nothing in Asia, holds in tight 0.9389-0.9406 range. Support is seen at 0.9341 – the spike low from yesterday. There is heaviness towards 0.9418 retracement high. EUR/CHF traded between 1.0438-56 in Asia after a push down from 1.0508 yesterday.

AUD/USD opened in Asia at 0.8006, traded a 0.7981-0.8022 range. There was choppy action, NZD leads post-RBNZ, month-end flows too. AUD/NZD rallies 1%+ from 1.0443 to 1.0520 before easing off.

NZD/USD opened in Asia at 0.7675, traded down from 0.7681 to 0.7593. RBNZ dovish language was the main catalyst for the move lower, with soft easing bias now. EUR/NZD now up 5% in past week from 1.3875 to 1.4637.

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Source:: USD/JPY fades post-FOMC rally, falls on strong yen after BoJ

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