USD/JPY has remained bid on any dip. Its still sitting under 155 and the picture ahead has:

  • large option barriers at 155.00,
  • large stop loss buyers resting above there

Traders are cautious of intervention around 155, it's the latest (in a long list) of 'lines in the sand'.

Japan's Ministry of Finance remains very aware that US / Japan rate differentials are a key fundamental driver and these show little sign of changing any time soon.

Ahead this week are key events:

  • the Bank of Japan meeting (statement due Friday)
  • US data Thursday and Friday, GDP then PCE

Its unlikely the BoJ will have much to say to halt the rise of USD/JPY, but the US data may offer respite (lower GDP &/or PCE inflation). Respite, not reversal though.

usdyen mof update 23 April 2024 2