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USD/JPY Meeting Headwinds Above Y105.00 But Upside Pressure Persists

JPY
MNI (London)
  • USD/JPY extended its recent recovery, following the break above Y104.40 (Jan11 high), to Y105.04 Monday in NY.
  • Failure to bring pressure to bear on reported resistance between Y105.05/15 saw rate ease of to Y104.90, closing at Y104.94.
  • The USD came under pressure in Asia as equities led a revival in risk which took rate down to Y104.83 before fresh demand emerged.
  • Rate edged to Y105.03 with a shallower pullback to Y104.95 into Europe with the underlying buoyant tone remaining in place.
  • Upside pressure reported to be meeting profit take sales from Japanese accounts, but with leveraged and IMM accounts holding decent short positions these could be seen coming under further pressure.
  • Support Y104.80, Y104.60, stronger into Y104.40.
  • Resistance remains between Y105.05/15, a break to expose Y105.50 then Y105.68(see MNI Techs below).
  • MNI Techs: USDJPY bullish conditions remain intact following last week's price developments and the pair is holding onto recent gains. On Jan 27 USDJPY confirmed a clear break of a bear channel resistance drawn off the Mar 2020 high. Resistance at 104.40 gave way on Jan 28, confirming a resumption of the uptrend that started Jan 6 and this also reinforces the significance of the channel breakout. The focus is on 105.68, Nov 11 high. Support is at 104.40.
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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