The Dollar closed higher against the Yen, finishing at 111.20 from 110.90 yesterday. The overnight high traded was 111.60 before easing in late New York. The latest Fed QE measure put pressure on the USD/JPY pair with the key US 10-year treasury yield dropping 9 basis points to 0.76%. In contrast, Japanese 10-year JGB yields were up one basis point to 0.05%.
News that Japan is considering plans to delay the Olympics by less than a year to early 2021 has had little effect on the US Dollar Yen pair so far. Dollar demand against the Yen is still evident but appears to be waning. This may be the result of speculative short USD covering as well as retail interest ahead of the Japanese fiscal year-end (31 March).
USD/JPY has immediate resistance at 111.60 followed by the 112.00-20 region. Immediate support can be found at 110.90 followed by 110.20 and 109.30. Look for a likely range today of 109.80-111.50. Prefer to sell rallies with the view of a broad-based US Dollar decline looming.
