USD/JPY approached resistance
USD/JPY rose to the 4-week high in the 103.60 area. The pair’s above the 55-day MA and the daily Ichimoku Cloud (103.10 and 102.50 – these levels act as support). ISM Manufacturing PMI rose a bit from February, but not as much as expected. UniCredit doesn’t rule out the pair’s advance towards 105.00.
Analysts at Bank of America recommend traders staying away from the pair. In their view, unless the greenback breaks above 103.76 (March 7 high), a decline will follow. Even if USD/JPY rises above this level, the outlook will become nothing but neutral. According to the BoA, this market still has several more months before the large bullish trend resumes.
SEB Bank says that “back under 102.69 is needed to blunt the attempt higher and also back below 101.71 is needed to conclude that 101.20 & 100.76 levels are back in harm’s way”.
Chart. Daily USD/JPY