The dollar selling in the 6.8 Employment Statistics component is expected to have temporarily subsided
Dollar/yen showed the expected behavior for both resistance and support as it worked out as anticipated.
It is unlikely to hold above 110 yen unless substantial tapering is priced in, and it likely won’t reach 112 yen under the current environment.
Two days before the CPI release on the 10th, reaching the target felt earlier than expected, but from a technical perspective, the short-term downtrend has ended, especially the sequence from 110.3 yen, and on a daily level it appears to be entering a phase of consolidation.
If it does not move between 109.7 and 110 yen, I think the dollar/yen should stay put until the CPI release on the 10th.
EUR/USD also touched 1.22, meeting the upper target planned for the first half of the week, so the same view as EURUSD applies to USDJPY.
There is CPI release this week, so I’m planning to shift the Saturday broadcast and do a live indicator session on Thursday at 21:15.
While volatility is shrinking within a range,as in the above USDJPY movement,there are times when the price action and flow are clear, so if you’re interested, please join.