FXstreet.com (Córdoba) - The dollar rallied versus the yen on Wednesday reaching a 2-week high, propelled by a better-than-expect ADP report and a positive reading of the ISM services PMI.
USD/JPY managed to overcome the 61.8% retracement of its latest 77.20/77.42 drop at 78.52 and hit a high of 78.58 before losing momentum. At time of writing, the pair is quoting precisely around the mentioned Fibo level, where it records a 0.5% gain on the day.
"With near-term studies in the positive zone, today's break and close above 78.50, is seen as a trigger for extension towards key barriers at 79.00 and 79.21/30", says Slobodan Drvenica, analyst at Windsor Brokers Ltd. "However, overbought hourly conditions suggest corrective easing may precede fresh rally. Previous high at 78.29 offers initial support, ahead of 78.10, today's low / 55 day EMA and 78.00, loss of which would delay bulls".
USD/JPY managed to overcome the 61.8% retracement of its latest 77.20/77.42 drop at 78.52 and hit a high of 78.58 before losing momentum. At time of writing, the pair is quoting precisely around the mentioned Fibo level, where it records a 0.5% gain on the day.
"With near-term studies in the positive zone, today's break and close above 78.50, is seen as a trigger for extension towards key barriers at 79.00 and 79.21/30", says Slobodan Drvenica, analyst at Windsor Brokers Ltd. "However, overbought hourly conditions suggest corrective easing may precede fresh rally. Previous high at 78.29 offers initial support, ahead of 78.10, today's low / 55 day EMA and 78.00, loss of which would delay bulls".
