USDJPY faces major resistance.
Friday morning in Asian trade we will be seeing a couple things that could put in some volatility in the $USDJPY. Number 1 would be the inflation data being released at 8:30pm ET. Also, BOJ nominee Ueda will be attending a hearing which could lead to some JPY volatility as we could get a glimpse of how he will steer monetary policy at the BOJ. A great writeup by our team can be found here.
Technically, the USDJPY still looks poised to trade to the 38% retracement of the October 2022 highs to January 2023 lows at 136.70. Also, with the 200dma just above, this should be very good resistance on any spike higher towards that level. Personally, playing JPY strength (XXXJPY short) in the coming weeks as Ueda takes the helm at the BOJ is how I am looking to play the currency.
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