Global macro overview for 15/02/2017:
Interesting remarks from Bank of Japan Governor Haruhiko Kuroda has hit the newswires during his speech at Japanese Parliment today. He stated, that BoJ policy is still aimed at 2% target and is not aiming at Forex exchange levels of Japanese Yen as exchange levels are affected by various factors, not only interest rate difference. BoJ still has a long way to hit price target, but BoJ is ready to continue powerful easing. BoJ policymakers are not thinking about raising target rates at the moment. In conclusion, it is a clear reiteration of his previous remarks regarding the inflation target and a possible intervention from BoJ.
Let's now take a look at the USD/JPY technical picture at the H4 time frame. The bulls have managed to break out above the level of 114.16 and now it will act as an intraday support. The next target for bulls is the technical resistance at the level of 115.60, but first to 50%Fibo at the level of 115.06 must be violated. Please notice that the market conditions starting to look overbought at this time frame, so the corrective cycle is due soon.
