USD/JPY Regains Momentum, 109 Back on Sight
recovery from one and a half year lows regained momentum over the last
hour, with bulls extending their control and now attempts another run
towards 109 barrier.
USD/JPY: Yen drops on profit-taking
Having peaked at 117.67 in the last US session, the Japanese currency is seen reversing a part of the recent rises against its American counterpart, largely on profit-taking after five consecutive sessions of extensive gains. At the time of writing, USD/JPY trades at 108.74, recovering from a brief dip to 108.57 levels, recording a 0.50% gain on the day.
Meanwhile, the JPY traders continue to digest the recent comments from Japanese officials defending their domestic currency, while noting that fx market intervention is not needed now, which has contributed to the unstoppable rise in the yen to fresh multi-month tops over the past week.
Further, the short-covering rally in the major remains unperturbed by upbeat Japanese current account data, which showed that the current account surplus expanded from JPY520.8 billion in January to JPY2.43 trillion in February, coming in higher than the forecast of a JPY2.03 trillion surplus.
Looking ahead, amid a lack of fresh economic releases later today, focus will remain on the Fed speaks and sentiment around oil and stock markets.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 108.99/ 109 (daily high/ round number). A break above the last, the major could test 109.49/86 (daily R1/ Apr 7 High). While to the downside, the immediate support is seen at 108.58/50 (daily pivot/ psychological levels) and below that at 108 (multi-month lows).
(Market News Provided by FXstreet)