Post-US data Dollar weakness helped USD/JPY push below the 114.50 mark. Option barriers, one with a USD 3Mln payout, were removed in the break lower and stops are also said to have been tripped.
These helped the price nudge to 114.45 but with the downside looking thick, the Dollar bouncing and even EUR/JPY attempting to rebound; the pair has struggled to sustain the lower levels. As a result trading has vaulted back higher and currently the price sits in the 114.70's. Looking ahead, selling into strength is expected with 114.90/115.00 seen as the key level on the topside if the Yen is to sustain its strength.
Against the Euro, the Yen has also struggled with speculators forced to square positions in the wake of the EUR/USD break back above 1.3350. Technically, EUR/JPY has bounced off the 10-Day M/A line (currently at 152.64) and any close higher will suggest that the intraday bearish bias is little more than a corrective tone towards the heavily overbought daily stochastic levels.
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