USD/JPY has traditionally been very sensitive to moves in the interest rate markets. With US rates heading higher and Japanese medium term rates staying steady to easy, many professional players are starting to eye a move back towards 100. The news a few weeks ago that the BoJ was looking to increase the size of it’s intervention war chest will also give bullish players more confidence in their positions.
There is important technical resistance close by in the form of a trend line drawn from 124 through 110.50. I’ll post a full technical analysis shortly.
