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Back Below Y108 as USD Under General Pressure

JPY
MNI (London)
  • Corrective pullback away from the Mar31 high of Y110.97 extended Friday to Y107.48 before bouncing back to Y108.15 into the 1600BST fix, drifting off to Y107.86 ahead of the close.
  • Early Asia saw rate retest Friday's bounce high only to turn lower again on reported off shore supply. Some demand at the Tokyo fix provided a mild counter before downside pressure returned to press rate down to Y107.65.
  • Asia traders continue to note Japan retail sector looking to buy USD/JPY in dips, suggested to be looking for higher yields with interest noted in TRY.
  • USD/JPY edged back to Y107.83, currently holding around Y107.80 in early Europe.
  • Support Y107.65 ahead of Friday's low of Y107.48. A break here to expose stronger support at Y107.25/23(Base of 1.0% 10-dma envelope/61.8% Y104.92-110.97).
  • Resistance Y108.00, Y108.15, stronger into Y108.30.
  • MNI: April's BoJ decision presents the polar opposite of the March meeting, with no expectations for movement in monetary policy settings. New board member Asahi Noguchi will vote on monetary policy matters for the first time, he sits in the reflationist camp. (Apr27)
  • More focus on Wednesday's FOMC
  • MNI Techs: USDJPY weakness extended once again Friday and the pair traded below pivot support at 107.77, the trendline drawn off the Jan 6 low. The breach strengthens the current bearish case and although the move lower is considered a correction, further downside appears likely. Price has also traded below 38.2% retracement of the Jan - Mar rally, this opens 106.78, the 50.0% level. Resistance is at 108.75, the 20-day EMA.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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