USD/JPY daily chart
That is the first stop on the way down as highlighted earlier here. The BOJ has gotten the ball rolling on the Japanese yen and we’re now just seeing things set in motion.
A break below the 100-day moving average (red line) at 147.73 will see buyers surrender the recent upside bias. That will then put into focus minor support from the 38.2 Fib retracement level at 146.82 next. But as mentioned earlier, the big one to watch will be the 1 February low near 146.00 and the 200-day moving average (blue line) – seen at 146.11 currently.
As the yen continues to build momentum ahead of the BOJ policy meeting later this month, those will be key levels to watch moving forward. Considering the recent technical break lower in Treasury yields as well, it is rather compelling to keep arguing for a further drop in USD/JPY at this point.
That being said, the upcoming US data releases might still alter the equation. We will first have the US non-farm payrolls release tomorrow. And next week, there will be the US CPI data, PPI data, and retail sales. Also on the agenda next week, there will be 10-year and 30-year Treasury auctions to watch out for.