- Abe’s confirmation that further stimulus would be in the pipeline and likely to be announced tomorrow weighs heavily on the yen.
- Selling pressure around the Japanese yen is now accelerating, USD/JPY up 1.77% on the day, currently trading at 102.35.
- Techs turn bullish, support further upside in the pair. We see scope for test of 103.75.
- Support on the downside seen at 102.04 (10-DMA), 101.33 (5-DMA) and then 100.20 (trendline).
- Bullish invalidation only on break below 100.20. Test of 98.79 then likely.
Recommendation: Good to buy dips around 102.10/20, SL: 101.33, TP: 102.80/ 103/ 103.75
