Currently, USD/JPY is trading at 111.72, up 0.18% on the day, having posted a daily high at 111.79 and low at 111.50.
USD/JPY has continued with the recovery of the 24th May highs at 112.12 and got through the 111.70 resistance and 1st June highs overnight. The dollar was making a come back in the US session with yields higher in the 10-year benchmark supporting a recovery within risk-on markets.
The theme stays with the FOMC's upbeat tone and rate hike last week vs the BoJ that continues to expand its stimulus without there being a realistic timeline for tapering at this stage. Today's BoJ minutes will likely be a non-event although will be scrutinised for any potential guidance as to when the BoJ might start reducing its stimulus.
Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the Momentum indicator eases within positive territory, rather reflecting the slow advance than suggesting easing upward strength, whilst the RSI indicator advances, currently at 67. "In the same chart, the price is trying to advance beyond its 200 SMA also indicating additional gains ahead, initially towards 112.00, the 38.2% retracement of the same rally."
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