JPY Trading Outlook (08-01-2015)

USD/JPY After the local buying in Asia gave USD/JPY a lift, so, too, did a rebound in risk across most asset classes. That rebound was reinforced by better-than-expected US ADP and Trade data, eventually lifting USD/JPY to a troika of intraday resistance near 119.70 (hrly Cloud top, 100-HMA & 61.8% of the 120.74-118.05 drop). Unfortunately, the risk rebound dissipated and USD/JPY fell back toward the London lows after the FOMC Minutes failed to impress. Prices are back by the Kijun at 118.71 heading toward the NY close. The main problem for USD/JPY is that Tsy yields are closing below where they were before the ADP and Trade data lifted them. US stocks are holding most of their gains, but N225 futures have shied away from the underside of the broken up TL from Oct that they fell below Tues. Rebounds in the yen crosses have also withered from NY opening highs, as some of the early gains were from P/T in oversold mkts ahead of Fri’s US Jobs report. EUR/JPY was wedged roughly between the 200-DMA and the Cloud base, failing to gain traction on Germany’s backing away from the Grexit scenario. 100-DMA supports GBP/JPY.