JPY Trading Outlook (22-08-2014)

USD/JPY NorAm traders came in to see USD/JPY backing away from the o/n peak at 103.96, which is the underside of the broken up TL from Jun and Oct ’13 lows. It’s also just below the April peak at 104.13 and 104 option barrier defenses. Japanese data du jour were mostly on the bright side and MOF flow data tended to confirm reports from Nikkei of Japan Post upping its foreign asset buying. GPIF and other pensions are said to be in line to do the same come Sept. Despite a strong grouping of US econ data Thursday, the USD was too overbought to push higher in NY ahead of the Jackson Hole event risk. There was a minor dip to the hourly Kijun support at 103.60 that was eagerly scooped up by those who missed this week’s breakout above 103. EUR/JPY ran into resistance at 137.94 from the daily Cloud base and the upper 21-day Bolli band; that despite another round of subpar econ data from the EZ. GBP/JPY is loitering just below its daily Cloud base at 172.42. Nothing to speak of on Friday’s calendar other than the Jackson Hole event.