Global macro overview for 12/04/2017:
Interesting comments from BoJ Governor Haruhiko Kuroda has hit the newswires recently. In his speech in the Japanese Parliament, Kuroda said that the Bank of Japan will pursue appropriate monetary policy, keeping the economy and financial markets in mind. Moreover, he said the bank sees no problems from asset purchases or expansion of monetary base. The BoJ easing main purpose is for price stability and not targeting FX market. In conclusion, the rhetoric did not change much, so there is still no chance for interest rate hike until the infaltion reaches at least 2%.
Let's now take a look at the USD/JPY technical picture on the H4 timeframe. The 50% Fibo at the level of 109.92 was violated and now will act as a technical resistance, together with the level of 110.10. The next important Fibonacci support is at 61% at the level of 107.85. There is still no sign of any bullish divergence and the market conditions are not oversold yet as well. The next support is seen at the level of 109.35.
