Forecasting the exchange rate of the Japanese yen might be a bit difficult as the Bank of Japan will manipulate the rate. If the Japanese yen is too strong against the dollar it might intervene; however, we don't think at this stage the Bank of Japan ...
The Pound (GBP) advanced sharply against the Japanese Yen (JPY) on Wednesday after the latest Bank of England Minutes supported Sterling and as disappointing trade data weighed heavily upon the Japanese currency.
This fact is significant because large speculators were heavily short the Japanese Yen (long USDJPY) headed into the week, and recent price action suggests many are losing patience with those positions and exiting their trades.
In the Asian session, at GMT0300, the pair is trading at 102.28, with the USD trading 0.11% lower from Friday's close. The pair is expected to find support at 102.03, and a fall through could take it to the next support level of 101.79.