Forex: USD/JPY below opening price, capped at 93.18

Having breached above the 93.00 handle, the USD/JPY reached as high as 93.18 before entering a take-profit stage which pulled the pair back down below the psychological level. At 13:30 GMT, the market found its session low, and despite a little bounce, the price remains below the opening level.

According to TD Securities analysts, investors may start questioning the momentum of the Yen: “The recent trends that have characterized FX trading—EUR strength and JPY weakness—seem deeply entrenched in the market but the extent of the moves seen in the past few weeks—unusually persistent by recent standards—are starting to cause some second-guessing regarding their durability”, wrote analysts Shaun Osborne and Greg Moore.

“The USD/JPY currency pair continues moving upwards; the price is consolidating near the level of 92.30”, wrote Roboforex.com analyst Igor Sayadov, expecting a rebound towards 93.60 or even higher, to test the channel’s upper border.