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USDJPY testing a key level

While US markets were closed, the greenback has managed to continue edging higher with a couple of Fed comments driving sentiment.

USD/JPY
Source: Bloomberg

Fed vice chair Stanley Fischer spoke in Israel of an early lift-off and gradual hiking is better than later and steep. Meanwhile, Loretta Mester said the time for a first rate hike is near. This kept a mild bid tone on the greenback and USD/JPY is still creeping towards the ¥122.00 handle.  The momentum in the price action seems to be building in the pair and this will be the third attempt at breaking this barrier over six months. I feel the current setup is enough for some traders to consider longs from current levels. A close above ¥122.00 will only give bulls more conviction. On the US calendar today we have core durable goods orders, consumer confidence and new home sales.

 

 

 

USD/JPY
Click to enlarge

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