NY Fed president Dudley’s warned in the NY session yesterday that markets are too complacent about rate hike risks.
Dudley said he expected stronger growth in US in H2 than in H1 and further improvement in the labour market.
USD/JPY is currently trading around 100.65, supports are seen at 99.54 (Aug 16 low), 98.79 (June 24 low).
The pair finds major resistance at 101.12, break above could find next hurdle at 101.28 and then 101.45.
Our previous call (link below) has achieved TP1&2. FOMC meeting minutes due on the cards later today will be a major driver.
Good to go long on dips around 100.80, SL: 100.30, TP: 101.12/ 101.45/ 101.60
USD / JPY this morning highlights insider rebound yesterday, testing the psychological threshold of 101 with a recent high at 101.14.
Recall that yesterday, the pair fell to a low of 99.53, but the passage under 100.00 had caused a return of buyers and sellers to profit taking, which created a bouncing motion that this endures morning.
However, the threshold of 101 which is currently in the currency could be an obstacle for the moment, because of its technical importance but also because traders await tonight at 20h the minutes of the Fed, which could be very influential the Dollar.
Consolidation between 101.20 and 100.50 could be the most likely scenario in waiting. If new highs above 101.20, the next target will be at 101.50. In case of break below 100.50 support, the support to target are at 100 and 99.50.
Currently the USD / JPY moves around 101 forex.