I know a lot of people are now looking for reasons to sell USD/JPY after the strong rally and especially after some jawboning from Japanese industrial heads who are hinting that the yen’s weakness may be complete, but there are others ( including me) who think this has a bit further to go on the topside.
2 way flows in the EUR/JPY have been ripping the USD/JPY around in Asia but the tone remains mildly bullish for now on the back of rising stocks and Japanese importers have been at work quickly snapping up offers under 87.00.
Before anyone asks, it’s hard to put a target or time frame on the USD here, and a reversal could easily come if US treasuries get clumped, but i still believe ‘the trend is your friend’ and only a dip back through trend line support around 85.50 from mid Nov would make me turn bearish. Anyway that my view for what its worth.
There are bids now in place from 87.00 down to 86.80 (importers) building in size ahead of 86.50 with exporters and intraday speculators offering just above at 87.50/60 (100 hour MA 87.59). Above here are further offers 87.80/00
USD’s currently sitting at 87.46
