The Japanese yen is nearly unchanged vs. the greenback on Monday, taking the USD/JPY to meander around the 102.40 region so far. The prevailing scarce volatility in the global markets continues to favour the high-yielding currencies, adding selling pressure to the Japanese yen. In addition, the recent in-line US Payroll figures leave no room for any significant movement in the dollar, adding to the sideline pattern so far. “There is every reason to anticipate that the BoJ will be among the last developed world central banks to withdraw extraordinary stimulus and this is likely to undermine the yen over the medium-term. We expect USD/JPY to move towards the 105.00 area by year end”, observed Jane Foley, Senior Currency Strategist at Rabobank.
The pair is now up 0.01% at 102.51 and a breakout of 102.65 (high Jun.9) would open the door to 102.76 (high Jun.5) and finally 102.80 (high Jun.4). On the downside, the immediate support lines up at 102.11 (low Jun.6) followed by 101.80 (Kijun Sen) and then 101.76 (low Jun.2).