The Japanese Yen hardly moved against the greenback with its brief drop following across the board dollar dumping quickly reversed as traders for the pair remain tightly wound. Key issue for USDJPY remains to be a question of policy with the BoJ Monetary Policy Statement and Outlook Report set for release on Friday. Note we will also be seeing inflation metrics for Japan on Friday adding to the idea of remaining in the sidelines.
Resistance
- 157.588 – Minor: 100% Fib Expansion of rally from April 5
- 156.060 – Minor: 61.8% Fib Expansion of rally from April 5
- 155.000 – Strong: BoJ Intervention Level
Support
- 154.554 – Minor: Tuesday Low
- 153.578 – Moderate: April 19 Low
- 153.053 – Minor: 20D Moving Average
USDJPY remains to be a binary trade around the 155.00 level. Any push above it will likely trigger buy stops while sell limits are also likely just under the price hoping to take advantage of a BoJ intervention. The safest course of action will be to remain sidelined though small positions may be placed above 155.00 taking into account the potential for large slippages. Similarly small sell limits may be placed just below 155.00 with tight stops at the break and just build into a sell-off if the BoJ indeed intervenes.
