USD/JPY: Gaining bullish strength

The USD/JPY pair continues to trade within familiar levels, now hovering around 107.70 with a mildly bullish bias, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“It’s a quiet day in the data front, and Japan didn’t release macroeconomic data, while the US one will only include minor figures, including the Richmond Fed Manufacturing Index for May, foreseen at -47 from -53 in the previous month.”

“The USD/JPY pair retains its neutral stance with a mildly bullish bias, as, in the 4-hour chart, the pair is developing above all of its moving averages, crossing above the 20 SMA. Technical indicators, in the meantime, turned marginally higher around their mid-lines, although lacking sufficient strength to confirm a new leg north.” 

“The main resistance continues to be the 108.10 area, with bulls becoming more confident on a break above it.”