A minor downward revision of the economic assessment by the Japanese government helped USD/JPY pair cut through resistance at 112.50.
Rises for the fourth consecutive day
The currency pair is up for the fourth consecutive day mainly on account of hawkish talks from Fed officials. Investors worried about the possibility of a Fed rate hike in April/June squared off dollar shorts.
Consequently, the spot recovered from the low of 110.82 seen on Friday, but was working hard to rise above 112.50 before Japanese government’s downward revision of the economic assessment strengthened the offered tone around JPY.
USD/JPY Technical Levels
The pair clocked a high of 112.74 levels. The immediate resistance is seen at 113.12 (5-MA on weekly chart), above which the pair could target 114.48 (23.6% of 125.86-110.97). On the other hand, a break below 112.54 (hourly 200-MA) would shift risk in favor of a re-test of the daily low of 112.14.
(Market News Provided by FXstreet)