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USD/JPY Firm but Y108.50/64 Provides Next Upside Hurdle

JPY
MNI (London)
  • USD/JPY spiked to an extended recovery high of Y108.64 in reaction to the release Friday of stronger than forecast US employment report, the move tracking the jump in UST yields.
  • Rate reversed to Y108.10, as UST yields eased, but managed to recover to Y108.40 into the close.
  • Recovery bid tone carried over into Asia, though at a slow pace, the rate touching an eventual high of Y108.49 before meeting stiff headwind resistance into Y108.50.
  • Rate eased to Y108.33 but underlying buoyant tone remains in place.
  • Break of Y108.50 to expose Friday's high at Y108.64 ahead of Y108.75 and Y109.00. Support YY108.10/00 ahead of Y107.82/76(Mar05 low/23.6% Y104.92-108.64), a break to open a deeper move toward Y107.50 then Y107.20.
  • UST yields remain the key driver in this pair.
  • MNI Techs: The USDJPY outlook remains bullish as the pair continues to climb and the trend is accelerating. Momentum studies are in overbought territory however this is not having an impact and instead reinforces the underlying bullish sentiment. Y108.00 has been cleared together with a number of resistance levels just above Y108.00. The focus is on Y109.00 and Y109.70. The latter is the Jun 8 2020 high. Initial support is Friday's intraday low of Y107.82.
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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