Analysts at Brown Brothers Harriman explained that the dollar rose in four of last week’s five sessions against the yen.
“It rose a little more than 2% last week, its second consecutive weekly advance and the largest weekly advance here in 2017. The dollar has build a small shelf now in the JPY110.80-JPY111.00 area. The JPY112 area that has been approached corresponds to the 61.8% retracement of the sell-off since the start of the year. The five-day moving average moved above the 20-day average for the first time since mid-March. The technical indicators are constructive.
A move above JPY112.00 could encourage a test on the falling trend line drawn off the January and March highs and comes in near JPY113 by the end of the week ahead. In terms of portfolio flows, we note that the last data through the April 21, showed Japanese investors sold what appears to be a record amount of foreign bonds over a three-week period (~JPY4.2 trillion or ~$37 bln).”