USD/JPY: bears sell the fact and dropped back below the 113 opening bid post 'Macron victory' news

Ross J Burland FXStreet

USD/JPY has opened higher today at 112.99 vs the close of 112.46 and is currently +0.38% at the time of writing in a fairly muted reaction to Macrons victory.

Much of the victory was already priced in and early Asia, as thin as it usually is, opened with a gap after Macron won the French presidential elections in a landslide win of over 65%. USD/JPY is now pulling back a little from the 113.13 high and a 'sell-the fact' trade.

The DXY was a weaker open and the greenback was indeed offered last week on the back of the nonfarm payrolls and employment data. The headlines were positive, but again, digging deeper behind that, the market was disappointed with wages remaining weak. The US added 221,000 new jobs in April. The unemployment rate also fell to 4.4% and its lowest in a decade.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that technical indicators are horizontal in the 4hr chart within the positive territory. "The price develops far above its moving averages, overall indicating limited upward strength at the time being. An upward acceleration beyond 113.00 is now required to confirm a new leg higher that can extend up to 114.40, a major static resistance this week."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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