The japanese Yen is trading weaker again but is slowly approaching key supports. One important reason is likely to be the inflation expectations, which remain at a comparatively low level in Japan. The weak industrial production data this morning also gave XXXJPY crosses a boost. Nevertheless, Japan is also likely to have to deal with rising inflation in the near future. In this respect, it is questionable how much longer the central bank will be happy about a devaluation of its currency.
USDJPY -- 129.35
Unfortunately, the currency pair missed my 50 ema (126.34) target and has been rising for three days in a row. Smaller resistance comes in at 129.78 but above the 130 treshold a test of the multi-year high at 131.25 is very likely. But for now, that is not my main scenario and I am looking for shorts towards the 130 level.
EURJPY -- 138.74
The currency pair is up more than 4.50% since the May 12 low. Its rally stopped just at the upper Bollinger band (139.11) today. The multi-year high (140.01) is less than a percent away and unless the upside momentum abruptly stops, it will likely be tested again. I am careful with shorts here.
AUDJPY -- 93.08
The weakness of the Yen is also an expression of the positive risk sentiment of the last few trading days. Should the bear market rally end, this should also be reflected in a weaker Aussie again in the short term. As such, this Yen cross is less dependent on the Yen's valuation than it is on general market sentiment. I like the pair lower from here but there is still some room to the upside. Above 94.17/32, I would exit short positions.
Good luck,
Sebbo