USD/JPY is now back above 98.00, printing a low of 97.80 when the pair was offered over night on Kuroda’s speech. This week has some key event risk for the pair, with US Q2 GDP and FOMC,but then comes the US employment report to paint a picture for the summer time markets that will be sensitive to whether the Fed will begin to taper QE at the 17th-18th September FOMC meeting.
USD/JPY halts before base of cloud
USD/JPY has stalled on the sell off towards the base of its cloud at 97.57 but this still remains exposed. A continuation in the downside here will leave the market under pressure and likely to slide back to 96.75/95.40 en route to the 93.75 recent low. Rallies could find that the 100.74 resistance line and the 101.60/78.6% retracement is tough to penetrate.