USD/JPY back above 100.00 as ‘Japanese Troika’ decides to meet

News that Japanese Troika – Financial Services Agency (FSA), Ministry of Finance (MoF) & Bank of Japan (BOJ)  - is scheduled to meet today has pushed USD/JPY back above 100.00 levels.

But the question is whether the pair will be able to hold/extend gains above 100.00. The ‘Troika’ has met before and has repeatedly failed to deliver anything effective. So odds of another disappointment are high.

The Dollar side of the story is weak as well, given the noncommittal Fed and the resulting drop in the Treasury yields.

Hence, odds are heavily stacked against the pair holding above 100.00 levels, more so because for the first time we have seen two consecutive hourly candles close below 100.00. This is the longest the pair has been below 100.00 levels in recent times.

USD/JPY Technical Levels

The pair was last seen trading around 100.15. Breach of immediate resistance at 100.28 (daily high) would open doors for a key resistance at 100.71 (50% of 2011 low – 2015 high). A violation there would expose 101.16 (yesterday’s high).

On the lower side, break below 99.54 (weekly low) would open doors for a drop to 98.79 (Brexit day low), under which a major support is seen around 98.30 (falling channel support).