USD/JPY (a 4-hour chart)
The increased demand for risky assets weighed on the yen. The upbeat
The USD/JPY pair traded around recent highs on Thursday. Prices rebounded from 105.00 and moved towards 106.00 breaking 105.50 on its way after a brief weakening in the Asian session. Sellers seemed to be guarding the level 106.00 as the quotes bounced from the level on every attempt to the upside. Bulls managed to break the level any way. After the break the pair trended upwards breaking 106.50 and testing 107.00 ahead the NY session. The pair hovered above the moving averages in the 4 hours chart. The moving averages 50, 100 and 200 are turning upwards. The resistance can be found at 107.00, the support comes in at 106.50.
The MACD histogram grew which indicates the buyers’ strength. The RSI indicator is near overvalued territory, favoring a new move lower.
After breaking the level 106.50 the pair may extend its gains to 107.00. If the level 107.00 holds it may reject prices towards 105.50.