USDJPY Breaches 144 Key Level

The yen strengthened against the greenback early in the NY session to 143.30 but then weakened again following better-than-expected US data to a high of 144.17 to be one of the worst performers in the G10. It is currently trading around 144.00. USDJPY is at levels not seen since early November. Japanese officials have stated in recent days that they want FX stabilisation and that they are watching moves with sense of urgency.

• Technically USDJPY is now the most overbought since mid-October. Initial resistance is at 144.17, June 27 high, followed by 144.40. Support is at 141.80. Moving average studies remain in bull-mode, highlighting an uptrend.
• EURJPY trended higher through Tuesday and is up 0.8% to around 157.77 as the euro strengthened while the yen weakened. The pair has risen over 5% across the last 11 trading sessions and is at its highest since mid-2008. These moves reinforced the current bullish theme and moving average studies are also in bull mode. 158 is psychological resistance with the focus on 158.72. Key support is 154.04, June 20 low.
• Aussie held onto most of its gains against the yen and is 0.5% higher at 96.23 after a high earlier of 96.50.
• Later today BoJ’s Ueda speaks at the ECB’s conference in Sintra at 1430 BST. There is no data.