USD/JPY (a 4-hour chart)
The USD/JPY continued with gains due to risk-on sentiment. Nikkei 225 reached the highest since February supporting the safe heaven yen. The U.S. dollar is strong across the board amid renewed hopes that the Fed will hike the rate this year.
The pair trades in an upward channel. The U.S. dollar was hovering near multi month highs against its Japanese counterpart on Wednesday. The dollar climbed higher and reached the mark 109.50 in the mid-European session. The USD/JPY pair traded well above the moving averages in the 4 hours chart. The moving averages 50, 100 and 200 accelerated their growth. The resistance can be found at 110.00, the support comes in at 109.00. The technical indicators retained bullish signals. MACD remained at the same level which confirms the strength of buyers. RSI consolidated within positive territory.
The price seems to be heading towards its immediate resistance at 110.00. Should this mark be reached successfully, a further extension towards 110.50 could be observed further.