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USD/JPY retraces slump and tests 200-day resistance near 158.02

BBH said relief rallies in USD/JPY may be capped by US-Japan intervention coordination and official warnings, which they expect to raise the cost of resisting a stronger yen.

Reported · Written up by our desk · Major Pairs

Brown Brothers Harriman said USD/JPY has fully retraced its prior slump and is now testing key resistance at the 200-day moving average around 158.02, according to FXStreet.

BBH’s Elias Haddad argued that any rebound, or relief rally, should be limited and could present an opportunity to sell the currency pair on strength.

Haddad pointed to what he described as coordinated US-Japan FX intervention and official warnings, saying they impose a firmer ceiling on USD/JPY.

He also said Japan’s holdings of US long-term Treasuries account for less than 3.5% of the total Treasury market, adding that even sizable sales would likely have only limited impact on Treasury yields.

Latest closeUSD/JPY 157.38 ▼1.8%

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