USD/JPY: Buyers in Control Above 109, Tuesday’s High Eyed?

USD/JPY: Buyers in Control Above 109, Tuesday’s High Eyed?

18 May 2016, 06:44
Roberto Jacobs
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USD/JPY: Buyers in Control Above 109, Tuesday’s High Eyed?

The bullish pressure behind the USD/JPY pair accentuated over the last hours as a renewed bout of risk-on wave gripped the markets, sending Japanese stocks sharply higher.

USD/JPY takes-out 5-DMA and beyond

The US dollar regained lost ground and jumped back on the bids versus its Japanese rival in the mid-Asian trades, as a sudden risk-on wave hit the markets and almost killed the demand for the safe-currency JPY.

The risk environment improved drastically after markets cheered stronger Japanese GDP data, which added to a series of upbeat growth numbers from across the globe, with the latest being from the US and Germany. At the moment, the USD/JPY pair jumps +0.11% to 109.25, easing-off session highs posted at 109.38, still up +0.10% on the day.

Next in focus for the major remains the FOMC April meeting minutes, which will provide fresh insights on the Fed’s interest rates outlook and could spur extreme USD moves.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 109.79/110 (50-DMA/ psychological levels). A break above the last, the major could test 110.50 (round figure). While to the downside, the immediate support is seen at 108.71 (10-DMA) and below that at 108.50/35 (20-DMA).


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