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The USD/JPY pair is turning bullish on prevalent dollar’s demand as trades in the 106.20 price zone and at fresh four-day highs. USD/JPY faces next resistance at 106.46, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“The dollar is up in a quiet start to the week, as investors welcome US President Trump executive orders, ignoring at the same time, mounting tensions between the country and China.”

“From a technical point of view, and in the short-term, the pair offers a  bullish stance. The 4-hour chart shows that it is advancing above a mildly bullish 20 SMA, also surpassing the 100 SMA, which capped the upside since early July. Technical indicators, in the meantime, turned higher within positive levels.” 

“A bullish extension seems likely if the USD/JPY pair continues to hold above the 106.00 level, with a steeper advance expected once the pair takes over 106.46, the high set last week.”