USDJPY: Up move coming up? - BBH

The US dollar dipped below JPY110 on two different occasions last week, and with the help of a backup in US interest rate, the greenback recovered and made new highs for the week just ahead of the weekend, explains the research team at BBH.  

Key Quotes

“The technical indicators are in a similar position as we saw with the Dollar Index.  The RSI is turning up, and the MACDs are about to do so, while the Slow Stochastics are flat lining in the trough.  A convincing move above JPY111 will likely run into offers near JPY111.70, which is important from a technical perspective, with moving averages and retracement level converging.   A move above JPY112.20 would be seen as confirmation that a low is in place.”