USD/JPY extends recovery as US stocks soar

By FXStreet FXStreet (Córdoba) – USD/JPY approached daily lows but again turned to the upside and broke above European session highs and climbed to 118.93. The pair erased daily losses and is rising after three consecutive days of losses.

The yen weakened across the board during the last hours as stock indexes in Wall Street extended gains. Near the end the Dow Jones is up 1.20% and the Nasdaq gains 1.65%. US bond yields are rising sharply; the 10-year rose back above 2.0%.

USD/JPY improves very short-term outlook

Price was able to break a descendant trend line and also rose above the 20-hour moving average, removing bearish pressure. The immediate resistance could be seen at 119.15 (Oct 15 high) and above at 119.40.

On a wider perspective, longer term charts still shows the US dollar under pressure with the pair still near the lowest levels in months, trading in the lower bound of the previous trading range that prevailed during September and until Wednesday.
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Source:: FX Street