Yen back on the shopping list today
The yen has found demand again after seeing steady selling yesterday. We topped out at 114.87 in Asia and have bottomed at 113.65.
The fact we couldn't make the 38.2 fib of the Feb move up around 115.00 shows that the sellers are still very much in control.
USDJPY H1 chart
There's support at the low and down to 113.60, then more at 113.15/20 and 113.00. Things are a bit messy sub 113.00 but 112.50/60 looks like it could house some support followed by 112.25/30.
Resistance now looks to be building at 114.00 and 114.25/30.
The most telling news today was the comments from Japan's Aso and Ishihara during the Asia session. They were very far from showing heightened concern over the recent falls and that's in line with what I wrote last week about intervention. It's the volatility they don't like first and foremost and that's calmed down since last week. These comments tell us that the government is in wait an see mode and that could keep the BOJ's hands tied, and reduce the threat of intervention.
The yanks are back in today so they'll want to play some catch up and could give us the direction for the rest of the day. Right now the range to play is 115.00 - 111.50/60 with extensions to 115.50 and the 111.00 lows.
