Shōwa Day, the late Emperor Hirohito’s birthday fittingly saw USDJPY taking a peak of the 160 region for highs at 160.192 before seeing the pair crash back to the 155 region ahead of the open of European Markets. Note, the fundamental picture for the currency is little changed from what it was last Friday when the need for an easy monetary policy was emphasized along with a none interventionist approach for the currency. As such we will reemphaized our position on the matter.
Resistance
- 160.192 – Spike High
- 157.790 – Intraday High/Low
- 156.880 – North American session high
Support
- 155.614 – Intraday Consolidation Floor
- 155.000 – Psychological
- 153.600 – Daily Range Play Floor
We will simply reemphasize our point about the medium to long term prospect for the Japanese Yen, a weak currency will be to the country’s advantage in regaining its position as an exporting power. A weak currency can help reinflate the economy. And, trading will swaps will mean an income stream on top currency movement for USDJPY buys. We will remain bullish on the pair until the Fed decides to actually cut rates requiring a reassessment of the pairs value.
