JPY Trading Outlook (22-05-2014)

USD/JPY A little something for bulls and bears in USD/JPY today, as prices fell toward this year’s 100.76 lows only to ricochet up to and just through the last two day’s 101.60 highs in NorAm trading. Tsy yields and Nikkei futures never backed the o/n slide, and reinforced the rebound when the Feb lows couldn’t be broken and the 100.75 barrier just below it was left untouched. Prices sprinted first up to hourly Cloud & 100-HMA resistance by 101.40 and eventually to 101.63, but somewhat dovish Fed speakers and FOMC Minutes trimmed Tsy yields. A marginal outside-up day with a long Candle leg gives the pair some traction. BOJ’s Kuroda says policy on hold and not directed toward by FX or stock prices. Apr Trade gap was smaller, but bigger than f/c. Offers now into 101.75 and more at 102. Weidmann gave EUR/JPY a little extra lift. Shorts may have been looking for an excuse to book some profits given how close today’s low got to the 200-DMA & 76.4% support near 138. AUD/JPY is closing by its high after it, too, got fairly close to the 200-DMA. GBP/JPY’s uptrend resumed today after more impressive UK data. Weekly investment flows & Markit PMI for May out tonight.