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).
