The two big factors here are US interest rates and the weight of the corporate offers above 84.25. If the offers remain in place and in size, then USD/JPY will have a lot of trouble rallying any further. On the other hand, if US rates keep moving sharply higher, then upward momentum in USD/JPY should be maintained. The third impacting factor is China; we have seen in the last week that China is again buying Japanese debt (although not in huge amounts) and this is USD/JPY bearish but we have also noted that China was buying USD/JPY on the 82 handle.
Lots of uncertainty here so that implies range trading. 82.35/84.35 are the main levels to keep in mind and whilst I wouldn’t be getting overly bullish close to the range top, buying dips is marginally preferred. The intraday session should remain between 83.50/84.10 barring any significant developments.
