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USD/JPY Needs Break of Y111.00 to Boost Upside Hopes

JPY
MNI (London)
  • USD/JPY managed to break below support at Y110.60 on Friday but struggled to bring pressure to bear on next support level at Y110.40, the rate touching a low of Y110.48 before it recovered to Y110.88, closing the week at Y110.79.
  • Rate nudged back to Y110.85 in early Asia before it turned lower as the USD made general gains on the back of COVID spread concerns.
  • Rate met support again into Y110.60 but recovery efforts remained soggy into Europe.
  • Rate seen needing a break above Y110.95/111.00 to improve upside hopes and expose the YTD high at Y111.12(Jun24). Break here to open a move on toward Y111.20 ahead of Y111.50. Support Y110.60, Y110.40 ahead of Y110.25/05. Y110.50 holds the strike of $1.5bln of option expiries for today's NY cut, $1.47bln being USD puts.
  • MNI Techs: USDJPY traded higher last week and again delivered fresh 2021 highs following the print above Y110.97, Mar 31 high and a previous bull trigger. This cements the uptrend, maintaining a bullish price sequence of higher highs and higher lows. Attention is on 111.30/47, the Mar 26, 2020 high and 1.0% 10-dma envelope. Initial key support is unchanged at 109.72, Jun 21 low. A break of this level is required to signal a top.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
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MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange BulletsHomepage

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