USD/JPY Finally Takes Out Hourly 50-MA Hurdle
USD/JPY is trading comfortably above hourly 50-MA, which repeatedly capped recovery in the pair since last week.
Technical recovery gathers pace
The spot now trades around 108.30 levels, which is well above the hourly 50-MA level of 108.18. Recovery may gather pace since a major technical hurdle has been taken out. Meanwhile, long duration and short duration treasury yields are trading higher as well, making USD attractive and helping USD/JPY recover.
The data calendar in US is light with just Import and Export price index due for release. Traders would also keep an eye on FOMC member Williams speech.
USD/JPY Technical Levels
The immediate hurdle is noted at 108.44 (Apr 11 high), above which prices could target 108.65 (hourly 100-MA). A violation there would expose 109.00 levels. On the other hand, a break below 108.18 (hourly 50-MA) would shift risk in favor of a drop to 107.66 (last week’s low). Next major support is seen at 106.65 (38.2% of 2011 low – 2015 high).
(Market News Provided by FXstreet)