Global macro overview for 19/12/2016:
One of the most anticipated economic events this week is the Bank of Japan (BoJ) interest rate decision, monetary policy statement and press conference. The BoJ will release its data between the end of Monday and the beginning of Tuesday, December 20. Market participants are expecting the central bank to keep the quantitative easing unchanged and negative rates on hold at the level of -0.1%. The weak yen and hawkish US growth expectations in form of interest rate hike in last Friday, have given the BoJ room to hold and even improve its economy assessment. The Japanese yen has lost more than 13% since the results of the US election, but a depreciation of the currency could boost corporate profits as much as 20 percent. In conclusion, high volatility is expected.
Let's now take a look at the USD/JPY technical picture on the daily time frame. Since the US election results bulls are in control over this market as the price is trading above all moving averages.The next resistance is seen at the levels of 121.70 and 123.77 and the support is seen at the level of 116.14.
From www.instaforex.com http://ift.tt/2h1L3gR
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