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USD/JPY adds to Wednesday’s gains and navigates the area of multi-day peaks above the 109.00 mark amidst a steady performance of US yields and a gradual uptick in the greenback. According to FXStreet’s Pablo Piovano, there is still room for extra upside.

Key quotes

“Speculations of higher inflation in the months to come and as a direct consequence of rising fiscal spending are expected to keep bolstering the upside momentum in US yields, and therefore support further the idea of extra gains in USD/JPY via a softer Japanese yen.”

“Later in the US docket, the final Q4 GDP figures will be published along with weekly Claims. Additionally, FOMC’s R.Clarida (permanent voter, dovish) is also due to speak.”

“Occasional bearish attempts in USD/JPY are forecast to meet support in the 108.40/30 band (recent weekly lows). A breach of this contention zone is not predicted to meet any support of relevance until the 106.20 region, where coincides the 50-day SMA and the February 17 top.”

“On the upside, a surpass of the YTD high at 109.36 (March 15) should open the door to the June 2020 high at 109.85 ahead of the psychological 110.00 mark.”