USD/JPY: Bulls Unstoppable, Climbs Further to Test 109.50
USD/JPY: Bulls Unstoppable, Climbs Further to Test 109.50
The ongoing upbeat momentum in the USD/JPY pair
gained further traction in the last hour as the rebound in oil prices
gather pace and triggered a renewed risk-on wave across the markets.
USD/JPY extends beyond 109 handle
The
Japanese yen continues to remain relentlessly offered amid a classic
risk-on theme persistent in Europe, as the European equities rebound
higher in tandem with the oil prices. In times of risk-friendly market
conditions, traders prefer to take the yield advantage and surrender the
safe-haven assets in favour of higher-yielding/ risk assets. At the
time of writing, USD/JPY climbs to 109.38, easing slightly from fresh
two-day tops reached at 109.45, still up 0.52% on the day.
Next
of relevance for the major remains the US housing starts and building
permits data lined up for release in the NY session. Besides, the
developments surrounding oil and stock markets will be closely monitored
by the markets.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 109.50/ 55
(daily R1). A break above the last, the major could test 109.77/110.04
(Apr 15 high/ 20-DMA). While to the downside, the immediate support is
seen at 108.70/65 (1h 200-SMA/ 10-DMA) and below that at 108.57/50 (Apr
15 low/ psychological levels).
