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Feb 27 - 05:55 PM

USD/JPY - Rally Pauses As Position Adjustments Dominate

By Krishna K  —  Feb 27 - 04:55 PM
  • USD/JPY set for consolidation in Asia after 0.2% fall Mon on profit-taking

  • Slightly lower U.S. yields and position adjustments ahead of month-end weigh

  • Downside limited as fears of higher U.S. interest rates remain entrenched

  • Tight U.S. jobs market, strong consumer spending, sticky inflation support

  • Fed's Jefferson: "No illusion" inflation fight will be quick

  • Fed-BOJ policy divergence undermine JPY; incoming BOJ governor Ueda dovish

  • Resistance 136.66, 38.2% of Oct-Jan drop; 100- & 200-day MAs at 137.08/14

  • Support 135.85-90, 135.40-50; Monday range 136.58-135.91

  • For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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