JPY Trading Outlook
USD/JPY: After six straight failed attempts to push the pair lower, bears finally gave up and the USD/JPY finally pushed back above 102 with the help of recovered Nikkei. USD/JPY has run into the daily cloud base and the 38.2% of the April wide by 102.39 today. The cloud base drifted up to 102.48 next week and stops are noted above 102.50. Limited pullbacks gave confidence to the bulls, daily Tenkan & 50% of the April slide are by 102.73, with the Kijun at 102.67.
USD/JPY: Offers by 102 capped the USD/JPY again yesterday, Unlike Monday, the push was below the hourly cloud. But Nikkei tends to open higher today which could help the pair to rally above 102 area. Given today's post Abe-Kuroda meeting comments, launching QQE2 at the late April BOJ meeting would be a surprise. Massive short yen spec positioning is banking on either the BOJ ease more, reinflation persisting and reducing real Japanese yields and the value of the Yen. USD/JPY major support at 101.20 and 100.80. Resistance at 102.25 and 102.55.
USD/JPY: The Nikkei joined other major equity markets in recovering which helped the pair rallied to a high of 102. However offers at 102.10-20 drifted the pair back down to the 100-HMA & Cloud top. If 100 HMA & Hourly cloud breaks, market would try to target for 200 HMA at 102.55 area.
USD/JPY: The pair remained in a range play mode of 101.30-101.80. However, the fact that 101.20 was unable to break while Nikkei futures made new lows for the year o/n created some doubts about s-t USD/JPY downside. For now, the pair need to either break 101.20 or 102.20 for further confirmation, US stocks, Nikkei and Treasury yields still remain relatively heavy.
Go to Japanese Yen (JPY) Archive