FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair surged to 123.33 this Monday, and managed to close the day with gains above the 123.00 level, helped by broad dollar’s demand, despite tepid US data.
Key Quotes:
“The pair surged at the beginning of the European session, but held within its early November range. During the upcoming Asian session, Japan will release its November Manufacturing PMI figures while BOJ’s governor Kuroda will offer a speech. Both will be closely followed as investors will be looking for any tip of a chance in the ongoing economic policy. From a technical point of view, the 1 hour chart shows that the price has recovered above its 100 and 200 SMAs, although the shorter stands below the largest, limiting chances of a more sustainable rally.
In the same chart, the technical indicators are turning lower near overbought readings, also limiting advances. In the 4 hours chart, the technical indicators turned lower above their mid-lines, indicating some short term upward exhaustion at the time being. At this point, the pair needs to firm up above the 123.40 level to be able to extend its rally during the upcoming sessions.”
(Market News Provided by FXstreet)