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USD/JPY gained strong positive traction on Thursday and jumped to over one-week tops around the 104.55-60 area. The pair is now approaching a cluster of major resistances ahead of the 105.00 mark, FXStreet’s Haresh Menghani reports.

Key quotes

“Market participants look forward to the US economic docket, highlighting the release of the latest consumer inflation figures for November and Initial Weekly Jobless Claims. Apart from this, the US stimulus headlines and some cross-driven volatility stemming from the key ECB decision might produce some meaningful trading opportunities around the USD/JPY pair.”

“The pair is now nearing a key resistance near the 104.75 horizontal zone, which is closely followed by the key 105.00 psychological mark. A sustained breakthrough will negate any near-term bearish bias and lift has the potential to push the pair further towards November monthly swing highs, around the 105.65-70 region.”

“Immediate support is pegged near the 104.20 area ahead of the 104.00 mark. The pair might then accelerate the fall further towards intermediate support, around the 103.65 region, before eventually dropping to test multi-month lows, around the 103.20-15 region touched in November.”