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.
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.