Anticipation of looser Japanese monetary policy and firmer US rates have helped underpin USD/JPY in recent sessions but the calendar is helping limt rallies in the near-term. The end of the Japanese fiscal year approaches March 31 and traditionally most of the year-end flows are concluded with a week or two to go before the turn. Thi suggests significant offers into rallies for the next week or so. It doesn’t mean we can’t go up, but it does mean the rally will have to be very strong to carry forward.
USD/JPY trades at 90.33 after trading as high as 90.69 in Asia. 90.16 is providing support on dips near-term. More lies down at 89.72, the 38.2% retracement of the 88.14/90.69 rally.
