Carry Trade Unwind Boosts Yen

• R2 159.45 – 12 July high – Medium
  
• R1 158.86 – 16 July high – Medium
  
• S1 155.37 – 18 July low – Medium
  
• S2 154.55 – 4 June low – Strong
  

USDJPY – fundamental overview

A large carry trade unwind via Aussie and Mexican Peso sales against the Yen, along with increased odds for a BOJ rate hike at the end of the month were behind the latest run of Yen demand. Key standouts on Wednesday’s calendar come from German consumer confidence, German and Eurozone PMIs, UK PMIs, Canada housing data, Canada manufacturing sales, the Bank of Canada policy decision, US PMIs and new home sales, and Fed speak.

Exclusive FX research from LMAX Group Market Strategist, Joel Kruger