USD/JPY Bulls Losing Their Edge?
USD/JPY was slightly offered in a positive start, following a positive close on Wall Street.
USD/JPY has been as high as 109.88 from intraday lows of 108.75, but the Yen fought back in early Asia and the bulls have started to give way again as the price now starts to potentially develop a bullish flag formation in consolidation. The main theme overnight was oil. Oil rallied and so did risk.
US oil made a high of $44.23bbls and has similarly started to consolidate, currently tucked in below $44.00bbls. The deputy oil minister of Iraq announced that OPEC and other oil producers will meet in May while Russia have said there is no agreement to meet in May. Oil is, however, higher on the prospects of an oil freeze meeting taking place. We also had a bullish start in the EIA weekly oil inventories. These showed less of a build at +2080k vs 3000k expected and +6634k prior.
USD/JPY is in a broad range of between 107.60/110.00. The first target of a break through 110.00 and above 110.28 (R3 and 20 dma at 110.26) are the 5th of April highs of 110.63/66 and 16th March lows. To the downside, the pivot stands at 109.15 before S1 of 108.80 and S3 at 108.05, guarding 107.60 10th Oct highs.
(Market News Provided by FXstreet)