Forex: USD/JPY extends recovery from 6-week low

FXstreet.com (Córdoba) - The Dollar edged up against the Yen on Thursday, extending its recovery from a 6-week low struck on Wednesday at 76.60, reaching a 2-day peak of 76.88 during the European session before easing slightly. USD/JPY is currently quoting around 76.85, where it records a 0.2% gain on the day.

From a technical perspective, Peter A Rosenstreich, analyst at Swissquote Bank SA, notes that as buying interest has still been pretty anemic, another test of the downside cannot be ruled out."The 76.58 level is significant as it's the only technical level standing in between here and the record low 75.58 (seen on 31 Oct). The last time USDJPY dipped to 75.58, the BoJ stepped in to aggressively intervene; pushing the pair nearly 400 pips higher".

According to the analyst, resistance remains at 77.20 (this week's opening high), 77.75 (30 Dec high), 78.04 (28 Dec high), 78.29 (29 Nov high), and 78.46 (1 Nov US session high).

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