The yen has been bowing to USD strength despite low US treasury yields and ongoing geopolitical tensions. After settling above 103, USD/JPY extended its moves on the not-dovish-at-all FOMC meeting minutes and reached 103.75, a level that was also a swing high back in March. So far, the pair stopped at this resistance line. Can it move forward or will the 102 “magnet” pull the pair down (perhaps on Jackson Hole dovishness from Yellen) for a while before it resumes its upwards trend? Here is how it looks on the chart:
Upon a convincing break of 103.75, the next line of resistance is 104.10, which was a double top back in early April. Support appears at the round number of 103 that the pair broke earlier.
For more, see the dollar yen forecast