The US dollar recorded a rise against the Japanese yen on Wednesday. The currency pair opened at 108.41 and ended 44 pips higher. Daytime extreme values were reached at 108.37 and 109.17, respectively. In case the price continues to rise the pair will move to the first resistance at 109.50.
The US dollar was down against the Japanese yen on Friday. By the close of US trading, USD/JPY was trading at 109.10, losing 0.20%. I believe that support is now at around 108.11, Monday's low, and resistance is likely at 109.49, Thursday's high.
The bulls made a solid comeback in mid-Asia, lifting the USD/JPY pair from near 109.60 region to now inch closer towards 200-DMA located at 110.26.
The USD/JPY pair took a sharp U-turn after risk appetite got a further boost from a renewed buying wave caught by the Japanese stocks, while broad based US dollar buying also helped the rate to take-off beyond 110 levels.
The USD index rises +0.15% to flirt with session tops reached at 99.10, while the Nikkei 225 index rallies 1% to 19,061, extending the previous rebound.
USD/JPY Technical levels A break above 110.50/55 (psychological levels/ 9-day high) would expose 110.97 (Apr 11 high) and 111.47/58 (Apr 5 & 10 high). On the other hand, a breach of support at 109.62/60 (daily low/ rising trend line support) could yield a test of 109.15/109 (10-DMA/ round figure) and 108.85 (Apr 21 low).
The bulls take a breath after 2-week tops of 111.39, triggering a minor-retreat in USD/JPY returned toward 111.15 region.
At the time of writing, USD/JPY is trading at 111.34, up +0.23% on the day, having posted a daily high at 111.43 and low at 110.97.
Despite frequent risky market surroundings, the USD/JPY pair deflated from the highest levels in 2-weeks, because the tepid-recovery in the US dollar towards its important peers from 5-month troughs misplaced legs in advance on the day.
TECHNICAL LEVELS TO WATCH: A braek above 111.39 (2-week high) could expose 111.50/61 (psychological degrees/50-DMA) and 112 (round figure). Alternatively, a breach of support at 111 (key assist) should yield a look at of 110.23 (5-DMA) and a 110.05/00 (classic S1/ Fib S1).
The dollar/yen had a strong upside momentum yesterday, reaching a peak of 111.18 and hit 111.42 earlier today during the Asian session. Trade signals are bullish. The price breaks above the resistance trend line, suggesting potential short-term retesting prospects of 112.20. The closest support is 110.85 (the daily EMA 200), whose breakthrough can take the price to a neutral zone and the direction will become obscure.
Dynamic trade recorded the dollar against the yen on Wednesday. Bulls again prevailed in the opening hours, continuing the positive momentum of Tuesday. So the start was set at a price of 111.07 and the resistance at 111.55 was broken after the pair reached a peak for the day at 111.77. Immediately afterwards, however, the trend changed sharply and the finish line was at a rate of 111.05.
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