The USD/JPY pair incredibly rallied today and gained
around 100 pips, reaching its highest level since mid February. Safe-haven
assets suffered huge selling pressure as the DXY was boosted by the US Treasury
yields having marked 90.63, its highest level for over a month.
The preliminary Nikkei Manufacturing PMI for April
came above the expectations and meanwhile BOJ's Kuroda pointed out that Japan
should continue very strong accommodative policy for some time in order to
achieve the 2% inflation goal.
Technically speaking the short term outlook remain
bullish until US bull will not fail again. On the four hour time frame the
price is developing well above its bullish moving averages. RSI and stochastic
are locating within extreme overbought areas and moreover continue to keep upward
strength.
Short term support is provided by the 38.2% Fibonacci
retracement of latest November to March bearish run at 108.50. But having the
strong upward traction of the moving averages it seems that the pair will avoid
testing of this level and is more likely to continue towards the first
resistance at 109.05 which if broke next challenge will be offered by 109.40.
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