USD/JPY – break below 100 would be a challenge for BOJ

With USD/JPY increasingly looking heavy, the decline to 100.00 appears likely. A daily close below 100.00 would be monumental and open doors for 98.00 levels.

Wilson Leung, from Trendsetter FX was on our Finance show today presenting his view on USD/JPY pair. The segment could be found here - youtube.com/watch?v=vIEkE4nLYEE

Key points

Roller coaster move in USD/JPY over the last few days

Bearish invalidation seen only above 102.66

On a larger scheme of things, bearish invalidation seen above 105.50 area

Remains in favor of selling the rallies in USD/JPY

Pull back in equities is likely to be a catalyst for USD/JPY sell-off

Tomorrow’s US CPI data is important

Below 100.00, BOJ would be forced to step up its rhetoric