Japanese Yen Pulls Back After BoJ Decision: Analysis For USD/JPY, EUR/USD, AUD/USD, NZD/USD

USD/JPY Gains Ground As Traders Focus On BoJ Policy

USD/JPY gains ground as traders react to the BoJ Interest Rate Decision. The Bank of Japan left the interest rate unchanged at 0.25%, in line with analyst consensus. The BoJ was cautious as its July’s rate hike put significant pressure on Japanese markets.

USD/JPY received strong support in the 141.80 – 142.50 range and is moving towards the 144.00 level. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge. A move above the 144.00 level will push USD/JPY towards the next resistance level at 146.00 – 146.50.

EUR/USD Tests Resistance At 1.1260 – 1.1275

EUR/USD is trying to settle above the nearest resistance at 1.1185 – 1.1200 as traders stay focused on the recent aggressive rate cut from the Fed and the changes in Fed’s economic projections.

In case EUR/USD manages to settle above the 1.1200 level, it will head towards the next resistance, which is located in the 1.1260 – 1.1275 range. On the support side, a move below 1.1150 will push EUR/USD back towards the support at 1.1110 – 1.1135.

AUD/USD Stays Strong As Gold Tests New Highs

AUD/USD continues its attempts to settle above the resistance at 0.6815 – 0.6825 as traders stay focused on the rally in precious metals markets. Spot gold moved above the psychologically important $2600 level and tests new highs, which is bullish for commodity-related currencies.

A successful test of the resistance at 0.6815 – 0.6825 will push AUD/USD towards the next resistance level, which is located in the 0.6890 – 0.6900 range.

NZD/USD Made An Attempt To Settle Above 0.6250

NZD/USD gained some ground as demand for commodity-related currencies remained strong. However, NZD/USD did not manage to settle above the 0.6250 level.

A move above 0.6250 will provide NZD/USD with an opportunity to gain additional upside momentum. On the support side, a move below 0.6220 will open the way to the test of the 50 MA at 0.6182.

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