USD/JPY held up relatively well overnight despite a weak US CPI report. Other data including the Philly Fed index proved to be on the strong side and firmer US bond yields lent the pair support. Also lending support was a continuing up bias in EUR/JPY. Specs here still eye a pop above option barriers at 151.50.
Aggressive defense of these positions continued but many see a break as only a matter of time. Should a break not occur over the course of today's trading range, the cross and USD/JPY could see dips, maybe large. The order situation in USD/JPY remains relatively similar to yesterday with offers eyed up to 118.35, the high in New York overnight.
Some stops are tipped at 118.40 but more offers are seen around 118.50. More stops are tipped above 118.60. Downside support is still eyed from the 117.70-80 level, 117.78 the low overnight. Bids are seen trailing down to 117.50. Some stops are eyed below but more Japanese bids are seen trailing down to 117.00.
Ichimoku levels remain close to where they were yesterday with the tenkan line at 118.25 and the kijun line at 117.86. The top of the cloud has moved up to 118.32. USD/JPY currently trades 118.23/26.
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