It is about testing the waters now however the thought is to not get too carried away. That’s the line of pondering amongst patrons in pushing USD/JPY larger above the 155.00 mark at the moment. The pair lastly breached the determine stage in US buying and selling yesterday however there isn’t any main overshoot but. Proper now, it’s buying and selling round 155.45 – its highest stage since 1990.
USD/JPY every day chart
From a technical perspective, the April 1990 excessive solely is available in at 160.40. That’s arguably the following key stage on the charts to observe. On the similar time, it looks like the road within the sand is shifting as Japanese authorities are alluding to the 160 mark as being a extra crucial one than at 155.
That being mentioned, the tempo of any decline within the yen can be a fairly vital think about all of this. And that’s additionally why USD/JPY patrons are being fairly cautious to not overstep the boundary to set off a response from Tokyo.
In any case, we’re lower than 24 hours till the BOJ coverage determination tomorrow. That’s going to be one to be aware of, particularly Ueda’s press convention. The language that he makes use of goes to be closely scrutinised and can absolutely be a make or break second for the yen this week.
For now although, patrons are actually dipping their toes within the water to see if the road within the sand has actually shifted in USD/JPY. I reckon we’ll solely get affirmation on that tomorrow after the BOJ, and never earlier than the market closes as properly.
