USD / JPY Trading Outlook
USD/JPY after some action yesterday when the pair dipped to a low of 77.12, it has regained it’s losses and is back in the Y77.55-77.80. This range is slightly lower than earlier in the week and helps cement the view that the pair will slowly drop to a level where the BoJ will make a comment about intervention that sends it flying back up.
USD/JPY following the break of Y77.65 support yesterday it tracked below for a period of 12 hours before finally complying with the technicals and taking the designated plunge down to the key support of Y77.30 (Nov 30th low). This support is being tested and the resistance is clearly set at Y77.60. A break through Y77.30 exposes Y76.65 (Nov 18th low).
USD/JPY maintains its shallow downward trend that has epitomised this week’s predictable ranging. Y77.65 is the support for the day with the resistance reduced to Y77.85. Japanese stocks retreated after a promising start to the week. The stagnation of the pair is due to the high volume and interest in Europe and the Dollar and the Yen having a close correlation due to perceived safe haven status.
USD/JPY took a clean break through yesterday’s Y77.90 support and hasn’t been tempted to return as yet. This now stands as the new resistance with the very near support at Y77.60 and the more likely target sitting at last week’s low of Y77.30. For the time being, dollar demand is keeping the pair up but the inevitable slump will trigger raised eyebrows from the BoJ below Y77.00.
USD/JPY after a positive shift to the pair on Friday’s trading, breaking the Y77.90 resistance, it is once again ranging within a tight 20pip zone of Y77.90-Y78.10. Demand for Japanese bonds has reduced yields and increased the strength of the Yen but the Dollar has also seen increased demand with uncertainty in Europe still abound. Look for moves outside of the range and aim for Y78.50/80 or Y77.60/30.
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