- Yen strengthens following Abe advisor Hamada’s comments which suggested Japanese officials will likely wait and watch what the Fed does.
- Reduced prospects of BOJ stimulus lift the Yen, USD/JPY reversed gains from session highs at 103.80.
- The pair is hovering around 50% Fibo at 103.51, consolidates above 55-EMA at 103.28, weakness only on break below.
- US dollar remains in a net bullish position despite mayhem after the nonfarm payrolls disappointment.
- However, recent IMM report shows overall USD longs a little lower last week following the Jackson Hole event.
- Techs on weekly charts support upside. RSI, Stochs and MACD on the dailies are also biased higher.
- Major support levels - 103.28 (55-EMA), 103, 102.58 (38.2% Fib).
- Major resistance levels - 104 (trendline resistance), 104.23 (cloud base), 104.45 (61.8% Fib).
Recommendation: Good to long dips around 103.40/45, SL: 102.55, TP: 104/ 104.45/105.
