Guess all the yen traders out there must have just suddenly risen from the grave … about time (i’m almost excited actually !)
It was never going to happen quickly, but i think things are starting to take shape, with buy stops taken out through 80.70 folllowing the overnight comments from opposition leader Abe , the likely new PM, who wants to see the BOJ set rates at zero or below to boost lending.
Talk on the street is there are some reasonable offers running up into 81.00 but the bigger level is towards 81.45 (April 27 highs) and 81.50 is also the 61.8% retracement of the fall from 81.18 to 77.13 . Above there is resistance around 81.70/80 (81.71 April 25 high).
Perhaps equally significant is that the pair has broken out clearly now through the weekly Ichlimoku cloud top at 80.65, which if sustained helps reaffirms the move on a close above it tomorrow night.
USD’s touched 80.94 high’s so far on the EBS in Asia and currently sits around 80.90.
UPDATE: There’s talk of an option barrier at 81.00 with buy stops aligned on a break of 81.10
