Forex: USD/JPY extends fall below 98.00 as week ends

FXstreet.com (Barcelona) - The USD/JPY extended its daily fall below the 98.00 handle after the release of US Reuters/Michigan consumer sentiment data, as the economic calendar becomes empty and investors clear out for the weekend. The pair failed again to reach the 100.00 psychological level and it’s at a second corrective movement after the BoJ meeting and its outlook report.

The central bank announced a unanimous vote of to “conduct money market operations so that the monetary base will increase at an annual pace of about 60-70 trillion yen” in order to double the monetary base in 2 years. The central bank expects +1.4% in FY2014 excluding sales tax and 1.9% in 2015, while 0.7% in 2013. This comes as a big upside move from the previous outlook.

“The USD/JPY currency pair is forming another descending wave. We think, today the price may reach the target of this wave at 97.80 and then start a correction towards the level of 98.70”, wrote Roboforex.com analyst Igor Sayadov, expecting another descending structure with the target at 95.80 later.