USD/JPY Soft and Loses the 109 Handle Before Key US Data
has opened with some softness, losing the 109 handle and tha bas ethat
it had made in late US early/Asia trade. The low so far has been 108.70
at time of writing.
The pair was in a recovery from the lows of 108.67 overnight and went on to make pace on the 109 handle where the pair consolidated in a narrow range for two way business until Tokyo. We have had little in from the calendar overnight, and we await Kuroda speaking further towards the close for the week. We then have the remaining Fed speakers and key US data, including retail sales of which Westpac highlighted as the most key data on the week here.
For the technical picture, 109.50 and 110.20 are the last key defences before the key resistances at 110.81/111.90. "To see any real upside scope emerge we need recovery through this secondary level," explained analysts at Commerzbank. "Currently we have some divergence on the intraday charts and would allow for a small dip lower ahead of further upside attempts." to the downside, a break of the 100 sma on the 1hr sticks, located at 108.53 opens the recent ow of 108.21 and then the 200 sma on the hourly looks compelling at 107.64.