The worry for dip buyers is that they might push things a little too far and trigger Japan to step in once again. As such, there is caution in the air and it would seem like there is some unwillingness to get past 157 for now. But unless there is a change up in sentiment from US data and the Fed this week, you can bet that buyers will continue to dip their toes in the water to see how the BOJ/MOF might respond.
The psychological factor is arguably the key driver in the pair at the moment. However, it's also good to at least recognise what the technicals are saying. In this case, the near-term chart above continues to show that buyers are keeping poised above 155.00 especially.
The 200-hour moving average (blue line) is also an area where dip buyers are putting their foot down, at least for now. That is helping to keep the near-term bias more bullish still this week. The key level is seen at 155.38 currently. It would take a break of that and arguably the 155.00 mark to really drive further downside momentum in the pair from here.
