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May 07 - 05:55 PM

USD/JPY - Grinds Higher Despite Lower Yields Spreads, Intervention Risk

By Randolph Donney  —  May 07 - 02:00 PM
  • USD/JPY rose 0.5% and could test hurdles in the 155.00-50 range

  • Prices trying to post a close above the 21-DMA at 154.63 on Tuesday

  • Rebound fueled by 2nd chance to buy 152 breakout after weak NFP, ISM Friday

  • The 38.2% & 50% Fibos of last week's 160.245-151.86 dive are at 155.06/6.05

  • The 10-DMA and kijun are at 155.33/53, and the tenkan is at 156.05 on EBS

  • The bulk of this & next week's upper option expiries are at 155.00-50

  • Longs taking on risk of more suspected MoF yen buying, but BoJ still in QE

  • Key from here are US CPI and retail sales on May 15, bullish contrast key

For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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