USDJPY Approaching Important Levels

Yen is holding onto most of Friday’s losses versus the dollar at the start of APAC trading. It is currently around 143.56 after a high of 143.87 at the end of last week. It is approaching levels seen in mid-November when the government intervened. The USD index finished 0.5% higher.

• Given the levels of the yen, markets will be monitoring comments from officials closely for any signals that they will intervene again. On May 30 a currency diplomat reiterated that FX moves are being watched closely and the government won’t rule out any options.
• The uptrend in USDJPY has resumed and the bullish technical short-term outlook is retained. Initial resistance is at 143.87, June 22 high, and support at 141.21, June 20 low.
• EURJPY is holding around Friday’s close and is at 156.60 after dips were bought on Friday. The May 2 high and bull trigger were cleared which confirmed the resumption of the longer-term uptrend. The focus is now on 157.53. AUDJPY is down 0.8% to 95.94 after reaching 95.26, the lowest since June 15.
• Only data today is May PPI services, which are expected to rise 1.8% y/y. BoJ summary of opinions are also published.