USDJPY: Technical readings are stretched - BBH

Research Team at BBH, notes that the dollar has risen 7% against the yen over the past two weeks as it rose neared JPY111 for the first time in six months.  

Key Quotes

“Like the dollar's gains against the euro, the rise in the dollar vs. the yen fueled by the sharp higher US interest rates, the greater US premiums, and the general reflation meme. At JPY110.35 the dollar recouped half of this year's losses.  The 50% retracement from the dollar's peak from mid-2015 near JPY125.85 is a little below JPY112.50.  The technical readings are stretched. The MACDs and Slow Stochastics appear to be peaking, while the RSI is at its highest level since the middle of 2015.  The dollar has been climbing the five-day average.  It is now near JPY109.45.  Its violation would warn that the leg up is over.”