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The greenback is under selling pressure across the board, which means a limited advance in USD/JPY, now trading in the 106.10 price zone. The pair is bullish in the short-term but needs to take over the 106.20 region for another leg higher, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“The sentiment got boosted by US President Trump, who said late Monday that there’s no reason why the US economy can’t grow at a 20% pace in the third quarter, adding that he could cut taxes on capital gains and for middle-income families.”

“The USD/JPY pair is neutral-to-bullish in the short-term, although still below the 106.20 price zone, the one to surpass to confirm another leg higher.” 

“The 4-hour chart shows that the pair is above its 20 and 100 SMA, as technical indicators lack directional strength but hold within positive levels. Chances of a bearish extension are limited, as USD/JPY would need to fall below 105.70 to attract sellers.”