USDJPY Soars Back Towards Highs
JPY Breaks Down Again
USDJPY is soaring higher again this week shrugging off any suspected intervention from Japanese authorities crashed ahead of Thursday’s NFP release, plunging around 1.3%. However, despite the NFPs coming in heavily below forecasts, USD was above to avoid any sharper sell off with the greenback since turning higher again, now creating fresh upside pressure in USDJPY. The pair has almost entirely erased last week’s losses, heading back up through the 162 level and now almost back at YTD highs.
FOMC Mins Next
Looking ahead this week, Wednesday’s FOMC minutes could provide a fresh bullish catalyst for USD if the minutes lean on the hawkish side. As such, upside risks remain for USDJPY going forward and, consequently, further intervention risks are seen. Recent verbal intervention warning from Japanese officials had traders on high alert last week and its rumoured that the drop lower in USDJPY was likely a result of speculative action and nervousness rather than actual intervention. As such, risks of rea USD selling from the BOJ remain elevated and any hawkishness in the FOMC mins on Wednesday could prove the catalyst for some corrective action in USDJPY.
Technical Views
USDJPY
The sell off in USDJPY has stalled for now into the 160.49 level with the bull trend since resuming. Price is now back above the 161.95 level and looks primed for a fresh breakout higher 164 the next target for bulls. Bullish outlook remains while 160.49 stays intact as support.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.