USDJPY on trend
Dollar/Yen (USDJPY) is making progress in a well-formed rising channel but will need to overcome minor resistance and close above 111.00 to maintain progress. Channel support seems pretty firm in the 109.25/30 area so any pullback below 109.50 should be well-supported by buyers . Assuming the march North continues, we’d expect the characteristic slow and steady progress to the 113.80/00 level. The USDJPY pair is a highly liquid and well-ordered market and the sort of shenanigans you see in markets like USDZAR are mercifully extremely rare. We do not anticipate any fireworks with tonight’s overnight (01:30 GMT) release of Japanese CPI data (expected at + 0.1% y/y). At the current time it is largely led by US economic data so today’s data releases out of the States should be the last ones of the week to have any impact.