USD/JPY trades to session highs as the risk mood improves slightly to start European morning trade today

The yen is continuing to be pressured since trading yesterday, amid a turnaround in equities sentiment and that is stretching further to today as well.

The dollar is among the laggards so far but the yen is the one leading losses with USD/JPY pushing back above its 200-day moving average (blue line) after buyers held a defense at the 105.00 handle in trading yesterday.

Looking at the near-term chart for the pair:

USD/JPY H1 24-02

Buyers are back in near-term control on a push above the key hourly moving averages @ 105.43-47. That sees the near-term bias turn more bullish now.

That said, there are some large expiries closer to 105.65-70 that could limit gains for the pair as we look towards the session ahead.

But given the potential turn in the risk mood (now that the selloff in the Hong Kong market is over and done with), the yen could come under fresh pressure if dip buyers step in as they did in US trading yesterday.

The 106.00 handle remains a key impediment for any further upside momentum in USD/JPY so that will be the key upside resistance point to watch.

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