USD/JPY: 109 Tested as Nikkei Hits Fresh Session Highs
The offered tone around the JPY keeps growing bigger as we progress
towards the European open, mainly driven by improving risk sentiment as
the Japanese stocks extend the rally.
USD/JPY: Will buyers take control above 109?
The
major spiked to fresh daily highs at 109 levels after the Nikkei
climbed further to hit fresh highs, triggering a renewed risk-on wave in
the markets, which further dampened the safe-haven appeal of the yen.
At the time of writing, USD/JPY eases-off session highs and trades around 108.90, still up +0.90% on the day.
The
fresh buying interest witnessed around the riskier assets such as the
equities, was fuelled by upbeat Chinese trade data. The Japanese Nikkei
rallies +2.84%, while China stocks are up almost +2.50%.
Meanwhile,
markets appear to ignore the renewed weakness in the oil prices as
sentiment remains underpinned by higher equities and strong Chinese
imports and exports numbers. Ahead in the day, the traders continue to
track the sentiment in the oil and stock markets ahead of crucial US
retail sales and PPI data due later in the NY session.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 109.11 (Apr
8 High). A break above the last, the major could test 109.31/33
(10-DMA/ daily R2). While to the downside, the immediate support is seen
at 108.51/44 (daily low/ pivot) and below that at 108.09/00 (daily S1).
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