USD/JPY (current price: 102.98)
The Japanese Yen declined substantially against its major peers on Tuesday, pushing the pair above the 103 level for the first time in one month, despite the lowest Japanese Unemployment Rate in more than 20 years of 3.0%. USD/JPY is now back near the upper boundary of the declining long-term trend channel near the key 103.50 resistance. If the cross breaks out from the channel, further resistance levels are ahead near 105.50 and 107.50, while support is still found near the prior low at 98.50 and above that at the crucial 100 level.
Our assessment: USD/JPY rose above Friday’s high yesterday, as the short-term advance got another boost from the dovish speculation regarding the BOJ and the bullish U.S. Consumer Confidence release.
