USD/JPY - Runs into trend line resistance on stimulus talk
USD/JPY rose for the second day as investors expect Japanese government to come up with a fresh fiscal stimulus . Bank of Japan too is expected to announce fresh stimulus in support of the fiscal stimulus, thus making it a double barreled effort.
The pair ran into short-term falling trend line resistance of 103.62 before retreating sharply to 103.10 levels,
Outlook
Despite Dollar's retreat from 103.62 (trend line hurdle) to 103.10, the bid tone remains intact, although fresh bids are seen only in case of a 4-hr/daily closing above the falling trend line. Such a move would add credence to the rebound from 100 levels and open doors for 105.55 levels.
On the lower side, only a day end closing below 100 would signal bullish invalidation and could yield a drop to 99 levels.
The pair ran into short-term falling trend line resistance of 103.62 before retreating sharply to 103.10 levels,
Outlook
Despite Dollar's retreat from 103.62 (trend line hurdle) to 103.10, the bid tone remains intact, although fresh bids are seen only in case of a 4-hr/daily closing above the falling trend line. Such a move would add credence to the rebound from 100 levels and open doors for 105.55 levels.
On the lower side, only a day end closing below 100 would signal bullish invalidation and could yield a drop to 99 levels.
