High volatility means more room for profits

Forex volatility has returned and the time for big profits has come again. The Bank of Japan has left rates unchanged at 0.50% with a unanimous vote for the second consecutive month, following a hike in the overnight call and Lombard rates to 0.50% and 0.75% respectively in February. This decision has been widely expected by forex participants, seeing that deflation, even if temporarily, is still a concern, and the recent Tankan survey indicated…

firms outlook as slightly less robust.

Next focus will be BOJ Fukui’s press conference at 0630 GMT.

USD/JPY has lost some strength in the early Asian morning, and now the key levels to watch further would be around 118.70-60, then 118.40. Nearest resistance is around 119.20, then 119.40.

USD/CHF hit expected resistance around 1.2280 yesterday ("1.2260-80"), and has fallen 90 pips so far from that significant ceiling. Nearest support is around 1.2180-90, then 1.2150-60, then 1.2130.

15-min chart of Swissy:

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Posted in Categories: Forex.

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