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USD/JPY Buoyant as Month-end Approaches

JPY
MNI (London)
  • Edged back above Y109.00 in early European trade Thursday, edged on to Y109.24 in post fix trade before it closed around Y109.20.
  • JPY sales into the Tokyo fix this morning saw USD/JPY push up to Y109.31 but rate again ran into headwind resistance ahead of recent highs at Y109.33/36. However, underlying tone remains buoyant with rate currently seen settled between Y109.18/28 into early Europe.
  • Was mentioned Thursday that the Japanese retail community have been showing demand interest of late, the move back above Y109.00 expected to have boosted this view. Leveraged stale short positions likely to be pared in any corrective pullback into the Y108.50/40 area.
  • Monday expected to see month-end value USD demand emerge from US corporates which could add to the buoyant feel, with early model calls for the month-end fixes Wednesday suggesting USD/JPY demand to be seen. UST yields have the potential to counter this should they move lower.
  • A break of Y109.36/40 to open a move on toward Y109.56(76.4% 111.71-102.59) ahead of Y109.78(1.618% swing projection Y109.23-108.41) and Y109.95(1.618% swing projection Y109.36-108.41). Support Y108.50/40.
  • MNI Techs: USDJPY is firmer again but remains within its recent range. Trend conditions are bullish. Attention is on 109.56, a key retracement where a break would reinforce bullish sentiment. Momentum studies remain overbought however this set-up is still not having an impact on the trend and instead, it reinforces the current bullish theme. Support to watch is at 108.34, Mar 10 low. A break would signal a possible top and the start of a correction.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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