USD/JPY: bulls 'buy the fact' on Italian 'no' vote and Renzi intentions to Resign

USD/JPY has reversed the opening bearish gap with a high in the Tokyo open of 113.80 so far.

USD/JPY had been down to 112.82 early doors in Asia on the back of the exit polls for the Italian referendum that subsequently lead to Renzi resigning on losing the vote.

Italian referendum: PM Renzi concedes defeat, intends to resign

USD/JPY has rallied with the market taking profit across the board on the fact and we now enter a lull in respect of domestic key data points from the US ahead of the FOMC later this month. The nonfarm payrolls was slightly disappointing, but a Fed hike still remains on the cards later this month with the unemployment rate that collapsed to a new cycle low of 4.6.

USD/JPY levels

USD/JPY continues to probe the 113.80/114.87 resistance area while dips lower are expected to hold the 110.85/109.00 zone for a reattempt on the topside, as suggested by analysts at Commerzbank. to the upside, they see the 115.61 top of cloud (this is also the location of the 61.8% retracement of the move 2015-2016) as firm resistance and they are allowing for a near term consolidation.