Resistance 3: 108.20
Resistance 2: 107.80
Resistance 1: 107.40/50
Latest New York: 107.02
Support 1: 106.40/50
Support 2: 106.20/30
Support 3: 105.80
Rate grinds higher after breaking into support today; traders note model and momentum accounts buying USD Monday and Tuesday—good sign a top is forming. Traders report thinner conditions. Technical traders note a fib defense area around today’s highs and never forget that the fundamentals haven’t changed one bit in the last 72 hours; USD likely not this strong but more benefiting from Yen weakness. Still showing signs of a top, offers by exporters all the way to the overnight high at 107.77 traders say suggesting that the strength may be short-lived. Stops likely rolled up under the 106.80 area again for today so if a break happens—look for a drop to new monthly lows fairly quickly. Aggressive traders can sell anytime over the 107.00 area. Close over the 107.00 area a caution to the bears.
Data due Thursday: All times EASTERN (-5 GMT)
Tentative JPY Overnight Call Rate
Analysis by: Forexpros.com written by Jason Alan Jankovsky
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