USD/JPY Making Another Attempt Towards 109?
The USD/JPY
pair caught fresh bid-wave in the Asian morning this Wednesday, making a
fresh recovery attempt in a bid to conquer 109 once again.
USD/JPY: Yen extends weakness into 2nd day
The
dollar-yen pair found fresh bids near the mid-point of 108 handle in
early trades, and embarked upon its journey towards 109 barrier once
again, having taken out Tuesday’s high reached at 108.79 some minutes
ago. At the time of writing, USD/JPY eases-off session highs printed at
108.82 last minutes to now trade at 108.75, still up +0.77% on the day.
The
risk-on rally in the Asian equities, particularly the Japanese stocks,
refuelled the recovery mode in the major. However, the upside remains
restricted as markets trade cautiously ahead of the Chinese trade
balance numbers due for release any time post 2GMT.
Besides, the
Chinese trade data, focus also remains on the US retail sales and PPI
releases due later today for fresh direction on the major. While
Thursday’s inflation report from the US economy also remains on the
investors’ minds.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 109/109.11
(round number/ 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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