USD/JPY held up quite impressively yesterday despite a steep drop in US yields yesterday. Today, US yields are slightly firmer but USD/JPY is soft…Go figure.
Perhaps its the rumors of a potential widening of CNY trading bands by the PBOC over the weekend helping lift all boats in Asian currencies. Such a move (allowing a stronger CNY) would be welcomed by the BOJ, no doubt as Japan competes more directly with China than the US on many levels.
Protection of 79.50 barriers are rumored on dips. Support is seen at 79.65/70 and 79.55 on dips. Stops are eyed below 79.50.