Japanese yen stays pressured to start the new week | Forexlive
The yen is slipping to fresh lows on the day, with USD/JPY now up 0.8% to 132.45 with the currency also falling to daily lows against the rest of the major currencies bloc as well. This comes as speculation continues to intensify on Kazuo Ueda’s soon-to-be appointment as the next BOJ governor.
He hasn’t come out with guns blazing and yen bulls are fearing that he might just be Kuroda reincarnate at the central bank. However, as I pointed out here, that is very much expected to begin with as he needs to do some politicking in order to seal the deal on his move as BOJ governor. Think of it as a rite of passage if you will.
For USD/JPY, the pair is pushing to fresh highs since Tuesday last week with firmer resistance seen closer to 132.87-90 next:
That comes before stronger resistance is seen at 134.45 with the 135.00 mark being the key line in the sand in my view. If buyers can pull off a break above that, then we can start to argue for a shift in momentum in the yen in the bigger picture.
Otherwise, the downtrend and sequence of lower highs, lower lows appear to be somewhat intact and sellers can continue to plead their case based on the technicals at least.