USD/JPY: Below 109.30, door open to 108.65 - BBH

Analysts from Brown Brother Harriman, explain that the USD/JPY pair found resistance around a line connecting March and April highs and now is testing an uptrend line.

Key Quotes:

“The yen is the strongest of the major currencies. It has gained about 0.65% against the dollar. It has been grinding lower throughout the Asian and European session and has remained in narrow ranges near its highs in the US morning.”

“Today's pullback is flirting with the minor uptrend line drawn off the May 3 low near JPY105.50. We had anticipated that previous resistance in the JPY109.40-JPY109.65 would offer initial support. Minor penetration has been recorded, but meaningful upticks remain elusive.”

“A convincing break of JPY109.30 would open the door to a move toward JPY108.65. That corresponds to the 38.2% retracement of the rally from the JPY105.50 low. The 20-day moving average also comes in near there.”