While initial JPY weakness emerged in response to optimism for equities, the recent push to 1-3 month range highs for US yields has likely given investors additional reasons to pare back JPY length. Further, inflationary expectations are on the rise across the US curve which maintains pressure on 2.11% for US 10s. This, in turn, keeps our nearterm focus higher not only in USD/JPY, but also EUR/JPY, which risks a return to its 200-day average and resistance at 107.00/20 which has capped since July last year.
Click here to read the full report: Daily FX Technical
Barclays Capital