USD/JPY turned sharply higher on Friday during NY trade but I do not expect these gains to be easily maintained. The speculative market is very long and with US yields headed lower last year, I feel that consolidation is the likeliest outcome for both USD/JPY and EUR/JPY.
The level I’ve been watching on the cross is near 122.50 and I still fancy trying shorts on a test of this.
Interbank sales reports on Friday suggested some heavy sell orders above 94.00 in USD/JPY so keep an eye out for that as well.