Forex: USD/JPY above 96 ahead of Kuroda

FXstreet.com (Barcelona) - Last at 96.37, USD/JPY is trading near session highs, and highest since past March 14, following yesterday's implosion in Yen post-BoJ. As BK Asset Management managing director Kathy Lien explains: “The BoJ expanded its JGB purchases to 40 year bonds which means that all JGB maturities are eligible for purchase,” adding: “They also increased their target purchases to an annual pace of JPY60-70 trillion, translating to about Y7 trillion a month, up from a prior level of Y3.7 trillion.”

The pair is up +2.31% for the week so far, ahead of BoJ Kuroda speech at 01:00 GMT, and later on key US NFP at 12:30 GMT. The Yen has been the weakest currency among majors in last 2 trading days by far, with US 10 year note yields reaching fresh 2013 lows around the 1.76% level from its 2.08% peak back in March 08. Nikkei index closed yesterday at +2.2% around the 12600 points, jumping from -1.5% around the 12150 lows, with futures pointing even higher for today, while Chinese markets will keep closed for holiday.

Immediate resistance to the upside for USD/JPY shows at recent session highs 96.42, followed by March 14 highs at 96.63, and March 12 3.5-year highs at 96.71. To the downside, closest support lies at March 21 highs 96.13, followed by March 19 highs at 95.74, and March 27 highs at 94.90.