The Japanese Yen has slowly been losing ground against the other majors even as in theory we actually have a closing rate gap between Japan and the likes of US, UK, and Europe. Absent any structural changes it is difficult for us to see a stronger Yen in the near term. Ultimately the Yen pairs will be about carry trades until such time that actual rate cuts begin from the other major economies.
Resistance
- 158.011 – Previous Intraday Consolidation Resistance
- 156.906 – Previous Intraday Consolidation Resistance
- 155.775 – Intraday Consolidation Resistance
Support
- 154.670/976 – Previous Intraday Consolidation Resistance / 20D Moving Average
- 153.4000 – Intraday Consolidation Floor
- 152.27 – 50D Moving Average
USDJPY has seen a steady climb since the start of the week with decent ranges opening and closing nearly from lows and highs for the day. Oscillators too have been bullish in the daily charts while intraday stochastics crawl in overbought area given the steady trend. As such our bias will be to join the buy side of the market. A push above 155.775, the current consolidation resistance may be seen as an excuse to go long, though our preferred entry method will be a buy on dips with long hourly tails.
