USD/JPY testing 95.00

FXstreet.com (London) - USD/JPY is still trading below 95.00 for the first time since May since it shed over 2 big figures when the yen strengthened following the release overnight of the BoJ monetary policy minutes from the 21st to 22nd May meeting which revealed that one member, most likely Takahide Kiuchi, raised some concern that the BoJ’s communication strategy may actually be increasing JGB volatility. Data wise, we have seen that the Tertiary Index overnight, covering the services sector of the economy, was flat in April after falling -0.2% in March. This week, the market is anticipating FOMC for further direction.

USD/JPY bullish technical

Saeed Amen, strategist at Nomura retain their bullish view. First, Bollinger bandwidth, while still in the expansion phase, is reaching very high levels, suggesting that the breakout is likely to get exhausted soon. Also they point out RSI is getting to very low levels, suggesting it could be reaching a short-term low.