USD/JPY Storms its Way Through 109 and Beyond

USD/JPY Storms its Way Through 109 and Beyond

10 May 2016, 12:35
Roberto Jacobs
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USD/JPY Storms its Way Through 109 and Beyond

The bullish pressure behind the USD/JPY pair accentuated over the last hour after the risk-on rally in the European stocks intensified, now pushing the major further to hit post-BOJ highs above 109 handle.

USD/JPY at eight-day highs

The major finally chewed through offers lined up at 109 handle and gunned down the last, reversing almost half the BOJ’s inaction-backed slide to 105.50 levels. At the moment, the USD/JPY pair trades at 109.19, easing slightly from one and a half week highs hit at 109.25 some minutes ago.

The renewed upside in the major can be attributed to a solid rebound staged by the oil prices, which triggered a fresh risk-on wave across the markets and thus, almost killed the safe-haven bids for the yen. Meanwhile, next in focus for the major remains the US JOLTS jobs openings data for fresh incentives on the buck.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 109.50 (psychological levels). A break above the last, the major could test 110.28/42 (daily R3/ 50-DMA). While to the downside, the immediate support is seen at 108.74 (20-DMA) and below that at 108.31 (daily low).


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