USDJPY: shock moves up

The dollar was trading around 129.555 yen as a former Bank of Japan official said a new monetary tool it introduced to prevent long-term interest rates from rising could eventually become a new policy target once the central bank relinquishes control of the yield curve. Unlike its bond-buying operations, the funding facility allows the BOJ to use large amounts of money to drive down borrowing costs without worrying that the massive purchases will dry up bond market liquidity.

US dollar yen USDJPY - 4-hour K-line chart shows:

The 4-hour chart shows that the bullish momentum remains volatile and moves up. Although the short-term bullish momentum has been pulled up, the follow-up momentum is lacking. The MACD indicator is in the short area and moves upward, and the RSI indicator is at the 50 balance line.

Long-short turning point: 129.416

Suppression: 129.995, 130.385

Support: 129.026, 128.554

Trading strategy: Bullish above 129.416, target 129.995, 130.385

Alternative strategy: bearish below 129.416, target 129.026, 128.554