Dollar Bulls About to Hit 'Wall of Yen' at 115

Markets

Greenback has already tested 115 yen three times this year
Biggest one-month rally among major currencies faces hurdle

After profiting from a world-beating rally, dollar bulls find themselves at risk of being back at square one again when it comes to sustaining gains against the yen.

Bloomberg:

Even after finishing Friday lower following some soft U.S. economic data, the greenback has rallied 3.8 percent to 113.30 yen in the past month, the biggest advance among major currencies. The rally has some traders looking to 114.54 yen -- a key retracement point of the move since the U.S. election in November -- and to 115 yen, a level the dollar failed to sustain momentum beyond already on three occasions this year.

"There’s a lot of resistance up here, and we’ve come quite far," said Chandler, global head of currency strategy for Brown Brothers in New York. "But it’s not so much what you do right here. I’d be inclined to buy the dollar dip."

Other strategists aren’t sure whether the four-year bull run still has more to go. Since late 2012, diverging monetary policies between the U.S. and Japan have rallied the USD 63 percent higher at one point.

Now, most analysts say the best days are behind it.