Ya gotta hand it to USD/JPY. It has rallied a cent in the last 36 hours, helped by firm yields to overcome major selling at 82.50 and again between 82.75 and 83.00. Traders note several hundred million dollars to go each five pips, so the market is doing some heavy lifting this morning.
The question, now as ever, is can the market sustain its gains or will it suddenly become bulimic, as so often happened after grinding rallies, of late… It has been up the escalator, down the lift in USD/JPY these last few times…
83.20 is the upside target near-term. Traders expect a pause before we can attack that level with any sustained strength. Stops are seen above at 83.30/35. We trade now at 83.00.
