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Retains Bullish Feel After Rejection From Above Y109.00

JPY
MNI (London)
  • Extended recent recovery to Y109.08 in Asian trade Wednesday, with demand noted from the Japanese retail sector ahead of the Golden Week holidays (Tokyo closed today, Mon, Tue, Wed) though Asian traders did note supply from leveraged names at and above Y109.00.
  • Rate dropped to Y108.57 in post FOMC/Powell press conference trade, the Fed remaining on its dovish course, repeating its too soon to start talking about tapering.
  • General pressure on the USD continued into a Tokyo holiday thinned session, USD/JPY pressed down to Y108.44 before it met decent demand interest into the dip allowing it to recover to Y108.72 in early Europe.
  • Dip demand remains in play (Japan retail sector has shown this interest of late) but expect further sell interest to emerge at and above Y109.00. If rate can break higher to open potential for a move toward Y109.23(50% Y110.97-107.48), with the top of the 1.0% 10-dma coming through around Y109.40.
  • Support Y108.30/10, break below Y108.00 to expose Y107.85.
  • MNI Techs: USDJPY outlook is bullish. The pair traded below pivot support last week at 107.77, a trendline drawn off the Jan 6 low. This week's recovery though suggests the trendline has remained intact and a bullish theme appears to be developing. Price has traded above the 20-day EMA and further gains would open 109.96, Apr 9 high. On the downside, 107.48, Apr 23 low marks the key support. A break would resume the recent bearish pressure.
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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