USD/JPY Firmer, Closer to 109.00
The Japanese currency continues to depreciate on Tuesday, now taking USD/JPY to trade at shouting distance from the key barrier at 109.00.
USD/JPY higher on intervention threats
Spot
is advancing for the third session in a row today, extending its
rebound from last week’s multi-month lows in the mid-105.00s.
JPY
met increasing selling pressure after Japanese officials continued to
talk down the currency via threats of intervening in the FX markets in
case of undesirable volatility. In addition, the USD-rally remains
unabated for the time being, collaborating with the pair’s upside.
Nothing
worth mentioning data wise in Japan, whereas NFIB’s Business Optimism
index is only due in the US docket seconded by the API report on US
crude stockpiles.
USD/JPY levels to watch
As
of writing the pair is advancing 0.42% at 108.89 facing the immediate
hurdle at 110.86 (55-day sma) ahead of 111.92 (high Apr.28) and finally
113.73 (100-day sma). On the flip side, a breakdown of 105.52 (2016 low
May 3) would open the door to 105.18 (monthly low Oct.2014) and then
101.97 (monthly low Aug.7 2014).
