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Forex Flash: USD/JPY – tuff at the top

FXstreet.com (London)

USD/JPY has had some hard times in the 99 lvl this week and has failed to test the 100.00, having made it to 99.17 over night only to attract more offers as traders see these levels as the yen over sold and an opportunity to cash in.

Alexander Brinkmann Of Goldmans wrote:

'We are….believing that NFP brings an number of simmering bullish USDJPY elements nicely back in play and is the catalyst we needed to ultimately take us through the 100.00 lvl. '

He went on to say:

'As we have mentioned before though, the easy money in this trade is certainly over, with tactical trading the order of the day, but with US yields seeing a nice bounce off Friday’s lows, Japanese Equities playing caught up following Golden Week and the traditional cyclical supply having minimal effect, any dips in USDJPY towards 98.30 (pre NFP resistance) should be used as opportunities to re-load on the trade. Without doubt the market is under weight this trade once again and stop entries are mounting above 100.00 lvl. 99.50 is the first lvl to the topside and we expect to see decent exporter supply on the first attempt at this lvl. We have added to our cash position following Fridays US employment figures, combined with some short dated option structures, looking to play the 98.30-100.00 range initially.'

At the moment of writing, USD JPY trades 98.89.

There is in the way of little data out today which will allow traders to take a bet one way or the other.

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