USD/JPY Tracks Nikkei Higher, 109 – a Whisker Away
The extension of gains on the Japanese stocks further fuelled the risk-on sentiment and boosted the bids for USD/JPY, now pushing the rate closer towards 109 handle.
USD/JPY re-takes 109 handle
The dollar-yen pair rebounded higher this Thursday, reversing almost
half the previous slide as the improved risk sentiment favour the risk
currency USD. At the moment, the USD/JPY pair rises to 108.90, hovering
close to session tops printed at 108.94 last minutes, up 0.43% so far.
While the Nikkei keeps gains, although moved-off highs to trade above
16,600 levels.
The yen remains largely unperturbed by upbeat Japan’s trade balance data
as the broader market sentiment continue to drive the moves in the
major heading into the US weekly jobless claims and a couple of Fed
speaks due later in the NY session.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 109
(round number). A break above the last, the major could test 109.50
(post-BOJ highs). While to the downside, the immediate support is seen
at 108.50/46 (psychological levels/ 5-DMA) and below that at 108.22/00
(1h 100-SMA/ round number).
