USD/JPY poised to extend its advance with resistance seen at 106.70

FXStreet Team FXStreet

The USD/JPY pair is trading at fresh weekly highs around the 106.35 as the greenback retains its strength. The next relevant resistance level sits at 106.70, as FXStreet’s Chief Analyst Valeria Bednarik notes.

Key quotes

“The USD/JPY modest advance could be attributed to the behavior in US Treasury yields, which are modestly up in pre-opening trading. Equities, on the other hand, retain their bullish bias, but that does not seem enough to underpin the pair.”

“Japan published the Jibun Bank Services PMI, which printed at 45 in August, below the previous 45.4. The focus now shifts to US employment-related data, ahead of the Nonfarm Payroll report to be out on Friday. The country will release August Challenger Job Cuts and Q2 Unit Labor Costs. It will also publish Initial Jobless Claims for the week ended August 28, foreseen at 950K from 1006K in the previous week.”

“The 4-hour chart shows that the USD/JPY pair has held above all of its moving averages, while the 20 SMA finally turned higher, and is about to cross above the larger ones. The medias, however, remain in a tight 10 pips’ range. Technical indicators, in the meantime, advance within positive levels, reflecting increasing buying interest.”

“Support levels: 105.90 105.50 Resistance levels: 106.70 107.10”

Author

FXStreet Team

FXStreet

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