USD/JPY — 100% Proj Target Line In The Sand

Evidence continues to grow that 108.00 remains a fortress that buyers are committed to defending. Ever since the flash crash episode, we’ve seen constant buying activity lifting the rate away from the 100% projected target level circa the round number. I was triggered long last week and this is a position that I continue to hold onto awaiting for a resolution in either direction. The US 30yr yield spread as a proxy for the USD/JPY (highly correlated to US vs JP yield spread) still shows positive signs. Ever since the bearish run rolled over, 108.00 should represent the lowest risk area for a mean reversal trade. The accumulation of POCs over the last week through 108.00–108.10 is no coincidence.