While the tide has turned against USD/JPY due to a shift in perception of the respective monetary policies of the United States and Japan, the medium-term technical outlook hangs on what happens with a widely watched Japanese technical support level.
The Japanese yen rallied against the dollar for a
EBS flow data have shown FX traders have fled USD/JPY between Thursday and Tuesday.
The scope is growing for an even bigger USD/JPY loss to eventually probe the bottom of the daily Ichimoku cloud, that currently spans the 145.84-148.66 region.
A break under the cloud base will confirm a shift in the overall technical bias to the downside.
Note 14-day momentum remains negative after turning so on Monday, further highlighting the recent shift against USD/JPY. .
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