Yesterday’s rapid drop in USDJPY provided a bargain basement opportunity for bulls to pick up a few cheap ones then aided and abetted by the GPIF-led rally in the Nikkei
But 102.50 has been offered up as a strong cap to the rally today and we’re drifting back down to 102.15 as I type
Regular readers will know that I’m a rally seller in this pair and, as per my New Year predictions, felt that yen pairs would slide lower in 2014. I’m still of that view but, as ever, entry levels for fresh trades are crucial. Patience I feel is a virtue right now
So we have strong offers now at 102.45-50 which becomes a pivotal level, with plenty more offers into 103.00. Bids at 102.00 with stronger interest at 101.75-80 and 101.50. Play the range for now.
EURJPY selling today also adding to the JPY-positive tone with bids at 136.50 now history.. More lined up at 136.00 with strong offers at 137.00 and 137.20-30
AUDJPY and GBPJPY also weighing heavily, both currently trading near session lows at 94.75 and 172.05
