USD/JPY is currently trading at 110.41 vrs a days range of 109.82 - 110.64 and is up 1%.
Investors were relieved after the first round of the French elections resulted in an expected victory for Le Pen and Macron. The latest French interior ministry count had Le Pen at 24.38% vs Macrons 22.19%.
However, while the markets are thin gaps were wide and could be closed again on a reversal especially considering the risks to the EU Le Pen's party carries in the near term. The underlying concerns over the EU and EZ project remain a market driver and supportive of the yen in the longer run.
Meanwhile, analysts at Brown Brothers Harriman explained that the dollar needs to move back above JPY110 to remove the downside pressure. "The technical indicators are somewhat more encouraging. The MACDs are trying to turn higher, and the Slow Stochasitics did not confirm a move to JPY108 in the spot market and also seem poised to cross higher," explained the analysts.
USD/JPY levels
USD/JPY has recently recovered from the 55-week ma at 108.36 and today's price action has seen the major rally through a key resistance line of 109.88. On a continuation of the uptrend, the next major resistance line could come as the 55-day ma at 112.08 according to analysts at Commerzbank. who explained that only above 115.62 they would look for a challenge to the key short-term resistance offered by the 16-month resistance line at 117.18. "Below 108.13 will target 107.50 July 2016 high and possibly 106.85, the 61.8% retracement and we cannot rule this out but this is not our favoured scenario."
What is the biggest problem for Europe?
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD continues its downward trend for the fourth consecutive day, driven by a stronger US Dollar influenced by the hawkish market sentiment surrounding the Federal Reserve and expectations of prolonged higher interest rates.
GBP/USD: The first downside target is seen at the 1.2600–1.2605 zone
GBP/USD trades on a weaker note around 1.2620 during the early European session on Friday. The decline of Pound Sterling is backed by the growing speculation that the Bank of England will begin the rate-cut cycle this year.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.