USD/JPY tough resistance seen near 121.00 – OCBC

FXStreet (Edinburgh) - Emmanuel Ng, FX Strategist at OCBC Bank, believes USD/JPY could face strong resistance in the vicinity of the 121.00 handle.

Key Quotes

“Short-end vols remain elevated and even despite the BOJ’s Kuroda continuing to be uncertain about attaining the BOJ’s 2% inflation target on schedule, near term dynamics for the pair may remain a function of Fed-related expectations”.

“In the interim, the 200-day MA (120.83) and 121.00 may continue to limit the upside with 119.80 still expected to cushion on dips”.