The US dollar opened trading sessions with a further pressure extension since last week, sending the USD/JPY to five months fresh highs 107.96.The Japanese yen weakens on higher US yields and as concerns over US trade policy vanished. The sell-off in global bonds could increase upward pressure on the BoJ’s 10-year JGB yield target at 0.00% encouraging speculation that the BOJ may have to accelerate purchases thus weighing on the yen as well.
Add to that, strong US dollar index beating 100 handle at 2016 new highs 100.03. The Japanese yen remains under pressure by greenback and expected to extend gains in absence of root solution by BOJ governor Koruda.
Trend: bullish
Key levels to watch : Daily Pp 106.84
First Resistance: R1 108.30, R2 108.72, R3 109.32
First Support: S1 106.59, S2 106.27, S3 105.58
Remark: USD/JPY is bullish with confidence in US economy, US dollar is expected to keep pressure on the JPY, with strong buying pressure. Look forward for tomorrow US economic news at 1:30 PM GMT which might push the US dollar higher against the JPY.
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