USD/JPY extends bullish trajectory beyond 103.00 handle

Haresh Menghani FXStreet

The Japanese yen extended its recent declines during Asian session on Wednesday, with the USD/JPY pair holding on to its strength above 50-day SMA resistance to currently trade above 103.00 handle.

Talk of further monetary easing by BoJ and rising expectations of an eventual Fed rate-hike helped the major to extend its near-term recovery trend for sixth consecutive session. Adding to this, disappointing Japanese industrial production data, released on Wednesday, extended further support to the bullish sentiment surrounding the pair.

Moreover, prevalent risk-on sentiment, as depicted by upbeat equity market, is driving investors away from the perceived safe-haven appeal of the USD/JPY pair.

Looking ahead, ADP report on US private sector employment will be in focus during early NA session on Wednesday, which if surpasses expectations of 171k growth in private sector jobs would build up expectations of another strong headline NFP print and should trigger a fresh leg of up-move for the pair.

Technical levels to watch

From current levels 103.50-55 area seems to act as immediate resistance, above which the momentum could further get extended towards 103.95-104.00 resistance area. On the flip side, 50-day SMA near 102.70 region now seems to protect immediate downside and a sustained weakness below this immediate support is likely to drag the pair back towards support near 102.00 round figure mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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