According to some chatter today, there are some traders who are expecting to see a stronger Japanese yen in the short-term. Yesterday session saw USD/JPY hit a two-year high at 94.06, but has since been unable to generate any momentum. According to some traders yesterday’s high and today’s lack of follow-through could be an indication that momentum will start to favor the yen.
It is hard to see that as many analysts are expecting the Bank of Japan to “aggressively ease” rates when the new Governor takes over in April. that still is a few months off so.
The first major area to watch is the 23.6% fib retracement at 92.69. Currently the price is hovering around 93.40.
