USD/JPY touches fresh high at 120.32
The impressive turnaround in stock markets and USD/JPY continues today. The soft nonfarm payrolls report sparked worries about the US economy and led to USD selling on expectations the Fed won't hike this year.
I wrote about the retracement on Friday.
That lasted a few hours but afterwards, it's completely reversed. Lower rates also mean better risk sentiment and expectations for stronger performance from US companies. In turn, that's attracted investment inflows.
In the bigger picture, the retracement on Friday and today reaffirms the roughly 119-121 range that has persisted for the past 7 weeks.
It adds an upside bias because of the inability to generate momentum lower but a similar break to the upside a week earlier was also thwarted so there is no clear indication. The BOJ meets later this week and could help to get things moving.
