USD/JPY: Below 109.30, Door Open to 108.65 - BBH
Analysts from Brown Brother Harriman, explain that the USD/JPY pair found resistance around a line connecting March and April highs and now is testing an uptrend line.
Key Quotes:
“The yen is the strongest of the major currencies. It has gained about
0.65% against the dollar. It has been grinding lower throughout the
Asian and European session and has remained in narrow ranges near its
highs in the US morning.”
“Today's pullback is flirting with the minor uptrend line drawn off the
May 3 low near JPY105.50. We had anticipated that previous resistance in
the JPY109.40-JPY109.65 would offer initial support. Minor penetration
has been recorded, but meaningful upticks remain elusive.”
“A convincing break of JPY109.30 would open the door to a move toward
JPY108.65. That corresponds to the 38.2% retracement of the rally from
the JPY105.50 low. The 20-day moving average also comes in near there.”
