Mondays minutes of BoJ caused considerable volatility in USDJPY. The minutes showed the divided opinions among the rulers of monetary policy in Japan. BoJ stated this time that is required to achieve the target of 2% inflation. The Bank leaves its buying of government bonds at the current rate which is seen as a compromise between supporters of aggressive printing, and nine members of the BoJ who doubt that the alleged asset purchase program helped spur future price increases.

At the end of last week, USDJPY price reached the area of support 103.00 – 102.80. The supply for two days tried to break the indicated zone and bring price towards the next support at 101.50. It, however, failed and the demand was able to hold above the level of 103.00 at the end of Friday’s trading.

Monday’s trading started with bullish gap and rises above 104.00 resistance. After the initial increased volatility and movement in two directions USDJPY finally chose the north direction and morning high was recorded at 104.57. The range of upward movement is limited at present by upper limit of growth channel . USDJPY moves inside the ascending channel since the beginning of August 2016 and until there is a breakout it should be expected to continue the movement inside that channel. Currently the upper limit of the growth channel is located at the level of 105.30. This level caused on Oct. 28 a correction and now also should be closely watched in this respect.

USDJPY H4 Chart
USDJPY H4 Chart
USDJPY D1 Chart
USDJPY D1 Chart
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