JPY Outlook

From the FXWW Chatroom – No new momentum yesterday as the sellers above 121 and weaker US housing numbers knocked Usd/Jpy back into the cloud.  More sellers overnight have stalled the rally again too.  Buying dips remains the best strategy as 120.20 then 119.80 provide support.  US Durable goods today will dominate price action as although the market is a little long, positions are not over extended yet.  I don’t think we are going to break 122 without some help from the policy makers later in the week, so if we do see a rally to 121.50 it should be met with sellers again.  Big decision on Friday morning from the BoJ but expectations into the Fed tomorrow evening are almost non-existent. 

Watch for any comments/hints on the wires about Friday.  Expectations of action are running at about 45%. 

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