USD/JPY Consolidates at 6-Day Highs Amid Japan Stocks Rally
The USD/JPY pair clinches gains and sits near six-day highs as the yen
continues to lose ground amid an extended rally in the Japanese stocks.
USD/JPY finds support near 109.30
The
dollar-yen pair is seen consolidating strong gains witnessed over the
past two trading session and now awaits fresh impetus for the next leg
higher. At the time of writing, USD/JPY hovers around 109.45, easing-off
fresh six-day peaks reached at 109.54, still up +0.10% on the day.
The
extension of the rally on the Asian indices, particularly Japan, keeps
the sentiment buoyed and thus, diminishes the safe-haven bids for the
yen. The Japanese Nikkei rallies +2.93%, while the Australian stocks are
up almost +1.20%.
The major managed to regain footing after poor
US retail sales and PPI data induced dip and now wavers at higher
levels as we progress towards the US CPI and jobless claims report due
later in the NY session.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 109.74/86
(daily R1/ Apr 7 High). A break above the last, the major could test 110
(round number). While to the downside, the immediate support is seen at
109.15/109 (10-DMA/ round number) and below that at 108.87/76 (1h
50-SMA/ 5-DMA).
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