115 remains a key level for USD/JPY traders

The US/JP yield differentials continued to rip higher, although the rally on USD/JPY has hit a bump in the road. Today we discuss why we think USD/JPY can play catch up.

Charts (4)

In today's video we look at the USD/JPY spot chart after it printed a bearish hammer at a key resistance level. Whilst yield differentials suggest it could still break higher we need the bearish sentiment to ease off, as it could remove a pillar of support for the Japanese yen and allow USD/JPY to track higher. Therefore we highlight key levels we think that could be the difference between a deeper correction from its highs or continuation above 115, if breached. 

 

 

Everything you should know about the Japanese Yen

 

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