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).