USD/JPY has remained bid on any dip. Its still sitting under 155 and the picture ahead has:
- large option barriers at 155.00,
- large stop loss buyers resting above there
Traders are cautious of intervention around 155, it's the latest (in a long list) of 'lines in the sand'.
Japan's Ministry of Finance remains very aware that US / Japan rate differentials are a key fundamental driver and these show little sign of changing any time soon.
Ahead this week are key events:
- the Bank of Japan meeting (statement due Friday)
- US data Thursday and Friday, GDP then PCE
Its unlikely the BoJ will have much to say to halt the rise of USD/JPY, but the US data may offer respite (lower GDP &/or PCE inflation). Respite, not reversal though.
