USD/JPY – Quietly Slip sliding Away, BOJ Quietly on The Lookout

The Dollar slid further against the Japanese Yen to finish in late New York at 105.10 (105.38 yesterday) after trading to an early March low at 104.956. USD/JPY reversed late last week and has played catch-up with the Dollar’s fall against the other currencies. The BOJ is watching current levels from the sidelines with bearish sentiment growing on the USD/JPY pair. Any large downside moves could see BOJ officials intervene verbally. Overnight the Dollar rallied against most Asian and EM currencies and the combination of a strong Yen and weak Asians will be of concern to BOJ officials should this trend continue.

USDJPY H1 Chart - IG Daily FX - 29 July 2020
USD/JPY H1 Chart – IG Daily FX – 29 July 2020

USD/JPY has immediate support at 104.90 followed by 104.60. Immediate resistance can be found at 105.40 and 105.70 (overnight high traded was 105.686). Look for a likely trading range of 104.90-105.90. Prefer to buy dips.

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