Forex Investment and Currency Trading

USD/JPY – Resistance at 101.82 is expected to stall retracements for a return to the low at 95.88.
USD/JPY began a retracement phase last week after valuations reached oversold levels. With the recovery above 100.00 returning the daily studies to more neutral levels, resistance at 101.82 (close to 50% Fibonacci retracement of the February-March decline at 102.23) is expected to attract renewed selling interest for an attempt to take out initial support at 98.53. This outcome would validate the bearish view, projecting a return to the cyclical low at 95.88. 96.00 is viewed as a price target.

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The JPY was modestly softer against major currencies, with USD/JPY and GBP/JPY apparently forming triangles. The JGB yield curve flattened, with the 2-year sector constrained by hedge selling ahead of Tuesday’s auction. Nationwide supermarket sales gained by 1.9% yoy in Febraury after falling by 1.7% yoy in January, aided by the leap year day. The official land price report revealed that the nationwide land price average gained by 1.7% during the year to January 1, accelerating from the 0.4% gain in the previous year. However, the near-term economic outlook is deteriorating. The Cabinet Office/MoF business survey reported that the Business [...]

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