USD/JPY: Run-up finds resistance – OCBC

USD/JPY took another leg higher after US payrolls report surprised to the upside. Pair was last at 148.51, OCBC’s FX analysts Frances Cheung and Christopher Wong note.  

Immediate next resistance at 149.30

“Bullish momentum on daily chart intact while rise in RSI shows signs of moderation near overbought conditions. Upside risks remain but bias to fade rallies. Immediate next resistance at 149.30, 150.70 (50% fibo retracement of Jul double-top to Sep low) and 151 levels (200 DMA). Support at 148 (38.2% fibo), 147.10 and 145.20 (50 DMA).”

“Finance Minister Kato said that sudden moves in the currency market have negative impacts on companies and households while chief currency official Mimura is watching FX markets with a sense of urgency.”

“Last week, both PM Ishiba and Governor Ueda sent a coherent message that policymakers are in no hurry to normalise policy while former BoJ member Masai spoke about “range of 140 – 150 for USDJPY is comfortable”.”