USD/JPY needs to move above 106.45 to reinforce bullish bias

USD/JPY trades around the 106.00 level, after hitting a daily high of 106.43. Above the latter, the pair would underpin the bias higher, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Japan published the Q2 GDP, which came in at -0.6% QoQ, matching the previous estimate. Also, the July Jibun Bank Manufacturing PMI was out at the beginning of the day, bouncing from 42.6 to 45.2, beating expectations. The US session will bring the final version of the July Markit Manufacturing PMI, seen at 52 from 51.3, and the official ISM Manufacturing PMI, foreseen at 53.6 from 52.6 in the previous month.”

“USD/JPY is offering a moderate bullish bias in the short-term, as the 4-hour chart shows that the intraday rally stalled around a bearish 100 SMA. Nevertheless, the pair is developing above a bullish 20 SMA, while technical indicators have resumed their advances within positive levels.”

“Bulls will be in a better position if the USD/JPY  pair manages to break above the 106.45 daily high.”