USD/JPY is now testing waters below the 152.00 mark, down 0.6% on the day as Trump marks his visit to Tokyo. The drop today owes to some verbal intervention here, but also as the US offers a not-so subtle suggestion of how they'd like the yen to fare. For now, that's all translating to a firmer yen on the session with the technicals also starting to intrigue.
The pair looks to be running into a potential double-top pattern around the 9-10 October highs and is retracing back lower today. The drop also takes out the 100-hour moving average (red line), making for a more neutral near-term bias currently. That leaves some room to roam between here and the 38.2 Fib retracement level at 151.77 as well as the 200-hour moving average (blue line) at 151.69 currently.
If the latter gives way especially, that will see the near-term bias switch to being more bearish and allow for sellers to scope out a potential move back to 150.00.
But in looking out to other key drivers this week, the Fed and BOJ policy decisions will be the two big ones to watch out for in the days ahead. So, keep that in mind when reading into price action movements on the charts.
