USD/JPY Bulls Unstoppable, 108 – a Whisker Away
The rebound in the European stocks provided a fresh breath of air to the USD bulls, driving the USD/JPY further towards 108 handle.
USD/JPY regains hourly 200-SMA and beyond
The Japanese yen was smashed further against its American counterpart in the European session, as a sudden turnaround in the risk conditions favoured the sentiment towards risk currencies such as the US dollar. Among the European indices, Germany’s DAX rallies +1.68%, the UK’s FTSE jumps +0.74%, while the pan-European benchmark, the Euro Stoxx 50 rockets +1.30%. At the same time, the USD/JPY pair tests daily highs near 107.85 levels, recording a 0.64% gain on the day.
Moreover, renewed strength in the oil price rally also backed the upside in the major, while the US dollar index rises +0.12% to trade around 96.95 levels. Amid a data-light trading session today, immediate focus now remains on the US labour market conditions report and oil price action for further momentum on the major.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 108/108.20 (Apr 29 High). A break above the last, the major could test 108.69 (20-DMA). While to the downside, the immediate support is seen at 107/ 106.94 (round number/ daily S2) and below that at 106.43 (May 6 Low).