The Japanese Yen is again losing ground against the dollar though overall performance has been mixed managing to hold its own with the Euro and slightly weaker with the British Pound. Focus for the day remains to be the FOMC decision later where expectations are for things to remain steady though key here will be economic projections as markets begin to adjust expectations towards fewer cuts amidst a robust labor market even as inflation slowly ease.
Resistance
- 157.986 – Intraday Consolidation High
- 157.708 – High for May
- 157.474 – Intraday Consolidation High
Support
- 157.046 – Intraday Consolidation FLoor
- 156.557 – 20D Moving Average
- 155.967 – Intraday Highs
We continue to advocate carry trades particularly as we do not expect any further tightening from the BoJ and as we look for excuses for the Fed to hold steady for longer. Chart wise we need to clear the highs for May to build momentum for pushing towards the multi-decade highs this to us starts with a long on a solid close above 157.474 in the hourly charts. We could also use long tails in hourly charts as an excuse to go long.
