USD/JPY: Break above 109.30/40 to leave the 110.00 psychological level in play – OCBC

USD/JPY was last seen trading at daily highs above the 109.30 level. A break above the 109.30/40 is set to pave the way towards the 110.00 psychological level, economists at OCBC Bank appraise..

Key quotes 

“The BoJ has no plans to reduce ETF buying, suggesting that it retains a dovish leaning despite widening the YCC tolerance band.”

The USD/JPY has rebounded back above the 109.00 resistance, leaving the 109.30/40 March highs back into view.” 

“Note that the short-term implied valuations have moved higher in line with spot, leaving us more convinced of the sustainability of this run higher in the pair.” 

“A breach of 109.30/40 leaves the 110.00 psychological level in play.”