FXstreet.com (San Francisco) - USD/JPY gained ground for a third consecutive day Friday, ending the week with a 2.2% advance to 80.40 after peaking at a 5-week high of 80.56.
The sharp rally came on the back of JPY weakness due to a dovish direction in which the BoJ policy board seems to be moving, as well as Japan’s worsening trade deficits.
Should the rally persist in the week ahead, immediate resistance is noted at 80.89 (50%, 84.16/77.65 downswing), then at 81.18 (9 April low) and 81.54 (3 April low). The downside offers support at 80.13 (22 May high) and 79.78 (7 June low).
The sharp rally came on the back of JPY weakness due to a dovish direction in which the BoJ policy board seems to be moving, as well as Japan’s worsening trade deficits.
Should the rally persist in the week ahead, immediate resistance is noted at 80.89 (50%, 84.16/77.65 downswing), then at 81.18 (9 April low) and 81.54 (3 April low). The downside offers support at 80.13 (22 May high) and 79.78 (7 June low).
