USD/JPY bears taking control in Tokyo open

FXStreet (Guatemala) - USD/JPY is currently trading at 120.08 with a high of 120.36 and a low of 120.08.

USD/JPY is offered in the open of Tokyo this week and threatens the bulls leadership of last week's business from the get go, extending the closing sessions losses in the major. The data from Japan today was compelling and far greater than the consensuses. 120 on volume may well be taken out but a break of 119.65/80 would be required if there is to be any real concern for the bulls that otherwise may enjoy a cheaper position by buying these dips in an otherwise bullish trend overall within the string greenback environment. The BoJ's minutes were also of interest. The key take away was that the underlying inflation trend seems to be on track, in the BoJ's view with a fair number of members feeling that it will continue to improve.

Technically, we are still well within the ranges and key levels are some way off still. 120.80 is a level that could be indicating that a low has been established in March at 118.33. A break of 120.80 could open up the December and March highs at 121.86/122.04 again. In the near term, on any follow through of the downside, a break below 119.40 could be a free fall down to test the 119 handle based up on 6th April rally.