USD/JPY heavy offers down to test psychological 105 the figure

USD/JPY is taking a knock in the early open of Tokyo, building offers as we progress.

USD/JPY left the region of 105.80/90 to now print lows of 105.19 as markets sell the news of the extra stimulus that the market is actually 50/50 on for this week's BoJ.  The BoJ has a very hard journey ahead of them while negative rates are not working and helicopter money has a limited positive impact if indeed the rest of the global arena continues to struggle. 

"While we think sizable fiscal support is impending, we think the BoJ will opt to wait for a concrete budget plan in the coming weeks before easing further in a coordinated fashion, likely in the fall," predicted analysts at TD Securities, adding, “Chopper money” has received notoriety in the press but we see several issues related to implementation risk at this juncture."

USD/JPY levels

USD/JPY has fallen back from the 50 sma on the hr chart located at 105.96 and has sights set on a break of the 105 psychological handle with the 200 sma in its sights at 104.12. However, analysts at TD Securities argued that beyond the immediate event risk of a BoJ disappointment however, they caution in chasing a move lower in USDJPY below key support of 103.35/60 as impending fiscal stimulus should act as a deterrent. "Ideally, a dip towards the 104.00/50  range should offer an attractive zone to accumulate longs into the fall."