Tough day for USD/JPY. Lower US yields and disappointment over last week’s timid (and well-telegraphed) JPY 5 trln liquidity addition via JGB purchases have been working against the buck since early Friday.
For those looking for support, the 79.50/55 area should provide some respite in the near-term. The 100-day moving average comes in around 79.54 while a spike high August intervention comes in at 79.50. 80.00/10 is now resistance on rebounds as we trade at 79.81.
