USD/JPY Regains Momentum, 109 Back on Sight
The USD/JPY
recovery from one and a half year lows regained momentum over the last
hour, with bulls extending their control and now attempts another run
towards 109 barrier.
USD/JPY: Yen drops on profit-taking
Having
peaked at 117.67 in the last US session, the Japanese currency is seen
reversing a part of the recent rises against its American counterpart,
largely on profit-taking after five consecutive sessions of extensive
gains. At the time of writing, USD/JPY trades at 108.74, recovering from
a brief dip to 108.57 levels, recording a 0.50% gain on the day.
Meanwhile,
the JPY traders continue to digest the recent comments from Japanese
officials defending their domestic currency, while noting that fx market
intervention is not needed now, which has contributed to the
unstoppable rise in the yen to fresh multi-month tops over the past
week.
Further, the short-covering rally in the major remains
unperturbed by upbeat Japanese current account data, which showed that
the current account surplus expanded from JPY520.8 billion in January to
JPY2.43 trillion in February, coming in higher than the forecast of a
JPY2.03 trillion surplus.
Looking ahead, amid a lack of fresh
economic releases later today, focus will remain on the Fed speaks and
sentiment around oil and stock markets.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 108.99/ 109
(daily high/ round number). A break above the last, the major could
test 109.49/86 (daily R1/ Apr 7 High). While to the downside, the
immediate support is seen at 108.58/50 (daily pivot/ psychological
levels) and below that at 108 (multi-month lows).
(Market News Provided by FXstreet)
