USDJPY: Difficult levels to breach - BBH

The dollar appreciated against the yen for the third consecutive week as it has rose in five of the past six weeks and snapped a two-month losing streak in September, points out the research team at BBH.  

Key Quotes

“It has advanced to levels that may prove difficult to breach.  The MACDs and Slow Stochastics are getting stretched. Initial support is seen around JPY112.00 and then JPY111.50.”   

“The dollar has been largely confined to a six-yen trading range for the past six months of JPY108 and JPY114.  It is not perfect, there have been several violations, but if value (in this context) is a function of price and time, this range approximates it.  The technical indicators are constructive on the weekly charts.  One implication is that the pullback that the short-term technical indicators point to may provide an opportunity to medium term traders.”