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COZfx: QE to continue in order to achieve price stability target of 2%


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COZforex: For the past trading session, the USD weakened 0.52% against the JPY and closed at 101.13.

The safe haven appeal of the Japanese Yen rose on speculations of a terrorist attack on a Malaysian Airlines plane near the Russia/Ukraine border. Meanwhile, lacklustre equity markets also boosted the demand outlook of the Japanese Yen.

Earlier today, the BoJ, in its minutes for the June policy meeting, indicated that majority of policymakers agreed that the central bank would continue with its stimulus measures as long as the nation does not achieve a price stability target of 2%. Furthermore, the policymakers insisted that the central bank should closely follow the effects of geopolitical risks posed by Ukraine and Iraq on the economy.

In technical analysis, COZforex senior currency strategist Ian • Quigley said, USD/JPY is predicted to find support at 101.1, and a drop through could take it to the next support line of 100.83. Meanwhile, the pair is predicted to find its first resistance at 101.61, and a rise through could take it to the next resistance line of 101.86.

During a lack of releases today, investors would pay attention to global news.

(COZ forex UK)

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