USD/JPY plummets to 105.50 on Kuroda

The Japanese yen is sharply appreciating vs. its American peer today, now dragging USD/JPY to fresh lows in the mid-105.00s.

USD/JPY weaker on Kuroda’s comments

Spot gained extra downside pressure after Governor H.Kuroda has ruled out the possibility that the BoJ could incur in the so called ‘helicopter money’, pouring cold water on market expectations of additional easing measures at the meeting later in the month.

In the data space, US Initial Claims are due followed by the Philly Fed Manufacturing Index and Existing Home Sales. In Japan, the advanced manufacturing PMI for the month of July is due tomorrow.

USD/JPY levels to consider

As of writing the pair is retreating 1.17% at 105.63 facing the immediate support at 103.81 (38.2% Fibo of June down move) ahead of 103.47 (20-day sma) and then 102.00 (23.6% Fibo of June down move). On the other hand, a break above 107.42 (high Jul.21) would open the door to 108.32 (100-day sma) and finally 108.80 (78.6% Fibo of June down move).