USD/JPY: 120 yen next?
USD/JPY has reached levels just below 119 yen where it finally found some resistance (a shooting star candle was formed on H1). Further resistance is in the area of 119.40/88 (January and October 2006 highs) and then is the key psychological level of 120 yen.
Strong support is located at 117.20 and then at 116.50. Analysts at Commerzbank say that only an unexpected drop below 115.50 will bring the pair to 113.85.
Analysts at Sumitomo Mitsui say that “there will be nothing left to stop the dollar’s ascent” and that although the decline in inflation expectations was mentioned in the Fed’s minutes released on Wednesday, it won’t stop USD rally.