USDJPY: Initial support pegged near JPY109.70 - BBH

Analysts at BBH note that the US dollar rose 1.45% against the Japanese yen last week; its best performance in around 4.5 months.  

Key Quotes

“The rise in US interest rates and actions by the BOJ that demonstrated its commitment to both Qualitative and Quantitative Easing and Yield Curve Control drove the yen lower, offsetting whatever safe haven is associated with the dramatic fall in stocks.” 

“The dollar finished above JPY110.00 but stalled near the 20-day moving average in front of JPY110.50.  If the dollar is going to continue to correct higher, it needs to overcome offers likely around JPY110.80, and then JPY111.45.  The RSI and MACDs favor additional dollar gains, while the Slow Stochastics are moving sideways in their trough.  Initial support may be pegged near JPY109.70.”