The pair is posting fresh session highs of 105.87
General month-quarter-end USD demand coupled with option-led support between 105.25-50 again has helped put a base under USDJPY again today.
The pair looks/feels like it wants to test 106.00 again but we're still ranging for the moment. I was taught a good adage in my early interbank days: You can only sell when it's bid, buy when it's offered. Mind you in those days I was shifting a few hundred million at a time so we needed to contra-flow often to get the amounts done!
Still, regular readers will know I'm a great believer in the power of range and flows so I'll re-sell yesterday's shorts (bought back below 105.50) up here while respecting the current demand and see what happens if we breach 106.00 More market sell interest behind at 106.20 then 106.50.
When all's said and done nothing fundamentally has changed to shake any of the pairs out of recent ranges despite all the noise on and off stage. Good battle playing out between USD demand and month/year-end yen buyers.
Currently 105. 88 and holding latest gains.
USDJPY
