USD/JPY: yen crosses giving a show in Tokyo

USD/JPY and yen crosses have been showing some action in Asia, with the Yen falling to test through 101.00 vs the dollar while GBP/JPY, AUD/JPY and EUR/JPY have all shown an impressive bid, albeit momentum stalling in the Tokyo open.

At the same time, cable was in the driving seat and this boosted the cross within earshot of the 132 handle while reversing the latter part of last week's trade. For risks ahead, the focus turns back to the Fed in the immediate term, with a host of FOMC speakers: Yellen again (address Minority Banking Conference by video), Harker; Lockhart; Powell and Kashkari. 

Overall, the yen has been a stronger performer since the open-ended game plan announcements from the BoJ and will continue to attract safe haven flows elsewhere, as such an example explained by analysts at Bank of Tokyo Mitsubishi, "We continue to believe that the U.S. dollar is vulnerable to the downside particularly against the yen in the run up to the election," adding, "Investor unease over Donald Trump potentially becoming President could begin to weigh more heavily on USD/JPY reflecting heightened concern over a shift to more protectionist trade policy, and the potential negative impact that increased policy uncertainty could have the US economy which would likely prompt the Fed to delay resuming rate hikes until next year."

USD/JPY levels

USD/JPY was recently rejected at the four month downtrend around 102.40 and has fuelled a better offered theme that targets a break of the 100.00 psychological and 4 month support line. Overhead resistance is reinforced by the cloud at 102.22 and the 103.55 16th June low. However, spot is presently trading bid at 100.92, and next resistance can be seen at 101.02 (Weekly High), 101.05 (Daily High), 101.09 (key Hourly 200 SMA), 101.31 (Weekly Classic PP) and 101.42 (Daily Classic R2). Next support to the downside can be found at 100.92 (Daily Classic R1), 100.82 (Yesterday's High), 100.69 (Daily Open), 100.67 (Hourly 20 EMA) and 100.67 (Hourly 100 SMA).