- USD/JPY has been consistently making new daily highs, bouncing off from 110.67 lows.
- But a mixed outlook in respect to the US economy on the back of mixed PCE result and hawkish comments from the various Fed members speaking last week after a dovish FOMC tone likely to keep upside capped.
- Markets also await Yellen speaking later today in New York session. Yellen is expected to reinforce a message of caution.
- In the week to 22 March, there was a marginal rise in overall net long USD positions, while speculators continue to play Yen shorts.
- From the fundamental side, NTT Data Corp., a unit of Japan’s former telephone monopoly, agreed to buy Dell Inc.’s IT services businesses for $3.06bn as it expands sales outside Japan.
- The acquisition would increase NTT Data’s access to the US and other foreign markets to counter sluggish economic growth at home.
- USD/JPY finds immediate support at 113.05 (5-DMA), while 113.68 (March 28th highs) is immediate resistance.
- Daily Techs are biased higher but longer term trend in the pair is lower. Price action is well below the daily cloud and 200-DMA.
- Hawkish comments from Yellen could see tests of 114.50 levels, a dovish tone could see a reversal to 112.20
The material has been provided by InstaForex Company – www.instaforex.com