USDJPY taking on the old levels as demand picks up. Kuroda who?
123.65/75 was an area to watch on a move back up and here we are having a good go at it. We've been up to 123.81 and are hanging around like a bad smell
Kuroda's musings are ancient history now but his comments would have put some doubt in the minds of traders and that could put added attention on the levels here and higher up. There's a saying we use over here in Old Blighty, "Today's newspaper is tomorrow's chip paper" and there are some in the market that have also put Kuroda's comments in the bin. Hedge funds have been in buying up USDCHF today and were seen active in the options market earlier this week too, in strikes from 0.9350 through to 0.9700. The buying today has also been helping the bucks resurgence.
USDJPY H1 chart
The 9th June low is adding to the resistance already here and if we do break higher then 124.00 is the obvious next target. I expect that there will be resistance around 124.20/25 and stronger at 124.67/80, then 124.90, 125.00. The ultimate number to beat will be the 125.70/80 highs from last week
For the downside support looks pretty mild through 123.50 and 123.15/25 looks more encouraging
US retail sales are the big number today and we get to see if those tepid wage rises are going to start getting spent at the tills. The bulls will want a nice strong number to completely wash out the Kuroda crunch and if they do then the topside beckons. If it's not a good report we could have another quick rush to the exits
