FXStreet (Guatemala) - USD/JPY is trading at 101.54, up 0.31% on the day, having posted a daily high at 101.64 and low at 101.32.
JPY is soft since Friday’s close and broke up from the sideways channel, scoring some 20 pips above the 101.40 channel resistance. Camilla Sutton, Chief FX Strategist at Scotiabank explained that Japans industrial production data (rising 0.7%m/m and 1.0% y/y) was more encouraging than last week’s slew of disappointing data. “However, leading into the BoJ meeting, concerns are rising that the central bank’s forecasts will be revised lower and the tone will provide a hint of dovishness." For now, the 101.64 is holding the pair up ahead of advances to 101.74 and the 20 SMA.
With spot trading at 101.58, we can see next resistance ahead at 101.64 (Daily High), 101.70 (Hourly 200 SMA), 101.74 (Daily 20 SMA), 101.86 (Weekly High) and 101.88 (Daily 200 SMA). Support below can be found at 101.56 (Daily Classic R3), 101.52 (Weekly Classic PP), 101.48 (Daily Classic R2), 101.47 (Hourly 100 SMA) and 101.47 (Hourly 20 EMA).