USD/JPY Catches Fresh Bid, Looks to Test 108 Handle
The USD/JPY pair caught a sudden bid-wave and took-out Monday’s high, now rallying towards 108 handle as the bulls gathered pace for the next push higher.
USD/JPY eyes hourly 100-SMA at 108.43
The JPY bulls are seen fighting hard to regain control versus its US counterpart, but in vain, as the Japanese currency remains weighed down by the positive sentiment surrounding the Asian equities. At the time of writing, USD/JPY jumps +0.22% at fresh session highs of 107.82, while the Nikkei gains +0.36% to trade around 16,640 levels.
The major quickly recovered a brief dip below 107 handle (driven by the less hawkish comments from Fed Chair Yellen) in the US last session, and went on to extend its recovery from multi-week troughs as overall bullish tone across the markets helped underpinned the dollar-yen pair. Although no specific catalyst was seen behind the latest spike in the USD/JPY pair.
With Yellen’s speech out of the way, focus now remains on the Japanese current account and GDP data due later this week amid a data-light US macro calendar this week. While sentiment around oil and stocks will continue to drive the yen markets.
USD/JPY Technical levels to watch
In terms of technicals , the immediate resistance is located at 108 (round number). A break above the last, the major could test 108.43 (1h 100-SMA). While to the downside, the immediate support is seen at 107.42/32 (5-DMA/ 1h 20-SMA) and below that at 106.38 (Monthly Low).