USD/JPY: 125 a little far too soon?

FXStreet (Guatemala) - USD/JPY is currently trading at 124.11 with a high of 125.06 and a low of 123.74.

USD/JPY bears have been on the rampage post a broad based test of the greenback's resilience through stop territories. Brainard's dovish words punished the US dollar a little bit more in the US session, adding fuel to a good fire that started on the back of Greek chatter that was sending the EUR/USD up, accompanied with EZ CPI.

This has left the Yen major licking wounds back on to the 124 handle post shedding over a big figure from 124.80 business. However, we are capped here ahead of what may continue to be busy sessions ahead while otherwise 125.00 could be a real hurdle to conquer dependent on this week's outcome of data that include US Nonfarm Payrolls. At this stage, it is whether the major can make a real break from the otherwise stagnant 4-month ranges.

Analysts at JP Morgan explained that their forecast still shows USD/JPY in the low to mid-120s for the next year, though subject to inevitable spikes around US economic and/or Fed optimism. "This flat-ish profile is admittedly tame for a pair as notoriously volcanic as USD/JPY, but reflects a few considerations."