- USD/JPY has bounced off from multi-month lows at 110.66 on 17th March, but is seen strugling to extend gains.
- The major is extending range trade, and we see further weakness on breach of 110.75 support.
- CFTC speculative positioning for the week ending 15 March 2016 showed that long USD positions reduced sharply.
- Leveraged funds increased their net JPY longs for a fifth consecutive week by a further USD1bn to USD4.6bn, a new high in this cycle.
- Major calendar events this week which could influence the pair include US Durable goods (Thursday), Q4 GDP (third estimate) (Friday), Japan CPI Y/Y (Thursday).
- Tehnical indicators are inconclusive, momentum studies are neutral, weakness only on breaks below 110.75.
Resistance Levels:
R1: 111.75 (Mar 18th highs)
R2: 112 (5-DMA)
R3: 112.26 (Feb 24th highs)
Support Levels:
S1: 111.04 (Feb 24th lows)
S2: 110.97 (Feb 11th lows)
S3: 110.75 (Trendline)


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