USD/JPY is now testing waters beneath the 152.00 mark, down 0.6% on the day as Trump marks his go to to Tokyo. The drop right now owes to some verbal intervention here, but additionally because the US gives a not-so subtle suggestion of how they’d just like the yen to fare. For now, that is all translating to a firmer yen on the session with the technicals additionally beginning to intrigue.
USD/JPY hourly chart
The pair appears to be like to be operating into a possible double-top sample across the 9-10 October highs and is retracing again decrease right now. The drop additionally takes out the 100-hour transferring common (pink line), making for a extra impartial near-term bias at present. That leaves some room to roam between right here and the 38.2 Fib retracement degree at 151.77 in addition to the 200-hour transferring common (blue line) at 151.69 at present.
If the latter offers manner particularly, that can see the near-term bias change to being extra bearish and permit for sellers to scope out a possible transfer again to 150.00.
However in searching to different key drivers this week, the Fed and BOJ coverage selections would be the two huge ones to be careful for within the days forward. So, maintain that in thoughts when studying into value motion actions on the charts.
