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USD/JPY Challenges Y109.20-35 Resistance Zone

JPY
MNI (London)
  • USD demand through Wednesday's session saw USD/JPY extend its recovery to Y119.18, closing the day at Y109.15.
  • Asia picked up on this theme and edged rate on to Y109.21 before it ran into decent resistance which knocked rate back to Y109.04.
  • Japanese retail investors have been noted buyers in this pair on dips below Y108.80 in recent sessions and it had been suggested that profit take selling was likely to emerge at and above Y109.20.
  • Support seen at Y108.90, Y108.75/65 ahead of Y108.56(May25 low).
  • Resistance Y109.20, stronger between Y109.30/35 ahead of Y109.50.
  • US GDP, Core PCE, Durable Goods, Weekly Jobless Claims 1230GMT, Pending Home Sales 1400GMT.
  • Noted that Fed officials are easing taper talk into comments.
  • MNI Techs: USDJPY continues to consolidate and has held above recent lows. The outlook remains bullish. Attention is on 109.96, Apr 9 high with potential for a climb above 110.00. Note that the recovery May 12 means trendline support drawn off the Jan 6 low remains intact despite the move below it this week. Key support to watch is 108.34, May 7 low. A break would signal a reversal and confirm a break of the trendline.
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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