The Yen is getting more challenging now. Over the Christmas/New Year period it was a no brainer as USD/JPY responded to each ‘fight deflation’ comment from the Japanese government by trading higher and higher. On Monday that changed – after a weekend of the usual comments USD/JPY refused to auction to new highs (we noted this change in behaviour here on ForexLive in real time, by the way. ) as the Yen buyers came back (many to take profits). USD/JPY has continued to respond to the announcements and comments with weakness – yep, there are Yen buyers about again.
It looks like a period of two-way trading for the USD/JPY now (please note my usual trade horizon is a day trade frame).
Topside:
- 87.50/55 sellers
- 87.35/40
- 87.15/20 (though it looks like 87.10 has capped it for now) initial selling on the day
Downside:
- 86.85/90 buyers
- 86.75/80 and down through 86.50 is buying with stops below here.
