USD/JPY finds support at 50% Fibo level

Early gains in Yen pushed the USD/JPY down to 100.71 (50% Fibo of 2011 low – 2015 high) from where it recovered somewhat to around 100.85 levels.

Eyes Kuroda speech

BOJ’s Kuroda is scheduled to speak in Osaka and is widely seen defending last week’s decision to keep rates unchanged and introduce yield curve control. While many in the markets have called the introduction of yield curve control as the BOJ’s failure, the likes of Sakakibara, also known as Mr. Yen, feel the curve strategy is appropriate.

Mr. Yen also said the Yen is on a slow rising trend, but that has not had any impact on Yen. Post Kuroda speech the focus would shift to Fed’s Kaplan’ speak.

USD/JPY Technical Levels

The immediate hurdle is noted at 100.91 (5-DMA) above which the pair could target 101.57 (10-DMA) and 102.29 (50-DMA) levels. On the downside, a day end close below 100.71 (50% of 2011 low- 2015 high) would open doors for a cut through 100.00 levels and a drop 99.80 (weekly pivot S1).