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Headwind Resistance Noted into Y109.00

JPY
MNI (London)
  • USD/JPY continued to drift lower through Thursday trade, extending the corrective pullback away from the Mar31 YTD high of Y110.97 to Y108.61, with recovery efforts so far holding below Y109.00.
  • Risk appetite has seen pressure emerge on the USD, UST yields easing (10yr UST yield back below 1.6%) which is seen helping to restrict USD/JPY recovery.
  • Rate opened Asia at Y109.76 and was pressed back to Y108.61 in early Tokyo before demand emerged that bounced it back to Y108.94.
  • However, mentioned resistance into Y109.00 was able to counter the move, eased rate back to Y108.77 into Europe.
  • Support Y108.61, a break to expose the Mar23 low at Y108.41
  • Resistance remains into Y109.00, a break of Y109.10 seen needed to relieve current underlying downside pressure. Break of Y109.10 to open a move toward Y109.40/50.
  • Japan PM Suga to meet US Biden and VP Harris at the White House. Press conference at 2015GMT.
  • US Housing Starts/Building Permits 1230GMT, UofM Confidence 1400GMT.
  • MNI Techs: USDJPY maintains a softer short-term as the current correction extends. This week's move lower has paved the way for a test of support at 108.41, Mar 23 low and a key short-term level. Note too that the 50-day EMA intersects at 108.10. Clearance of this 108.41/10 zone would signal scope for a deeper sell-off ahead of 107.43, a trendline support drawn off the Jan 6 low. Initial firm resistance is at 109.96, Apr 9 high.
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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