USD/JPY rebounded amid chatters of USD quick overlaying, month-end flows. Pair was final at 144.03 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong observe.
Close to time period dangers for the USD/JPY are to the upside
“Delicate bearish momentum on day by day chart is fading whereas RSI rose. Close to time period dangers skewed to the upside. Resistance at 145.40 (50 DMA), 146.10 ranges. Assist at 142.20 ranges.”
“USD dangers (FOMC minutes, Core PCE) this week might even see additional unwinding, main to close time period USD/JPY upside dangers. We search for rally to fade into once more. On Friday, we watch Tokyo CPI, IP, retail gross sales knowledge. Hotter than anticipated knowledge ought to curtail the latest rebound. Whereas the timing of BoJ coverage normalisation could also be deferred, coverage normalisation will not be derailed.”
“Fed-BoJ coverage divergence and USD diversification theme ought to nonetheless help USDJPY’s broader path of motion to the draw back.”
