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The USD/JPY pair holds on to this year’s gains, trading above the 105.00 level. In the view of FXStreet’s Chief Analyst Valeria Bednarik, the risk is skewed to the upside.

Key quotes

“Vaccine hopes and progress in US stimulus talks maintain the mood upbeat, with global indexes trading in the green and US Treasury yields ticking higher. In general, the American dollar retains its latest strength, consolidating Tuesday’s gains.”

“The 4-hour chart shows that the USD/JPY pair keeps developing above a firmly bullish 20 SMA, while technical indicators consolidate well into positive levels.” 

“Another leg higher could be expected on a break above 105.20, the immediate resistance level.”