USD/JPY: bulls challenge 109 handle through 4hr 200 sma

By FXStreet USD/JPY bulls are looking to break up out of the 5 day consolidation below recent highs of 109.54 and have made an early bid for territory on the 109 handle in Tokyo.

USD/JPY is light on the back of a positive close on Wall Street and the open was also positive in Asia. Risk was better intra-session with a rally in oil and commodities with WTI seeking out $48bbls with a high of $47.91. Fundamentally for Japan, economic conditions are negative and the Finance Minister Aso will talk about FX at the next G7 Financial Minister and Central Bankers summit 20-21st May in Japan.

Elsewhere fundamentally, the sales tax decision is said to be made by PM Abe for a second phase of increases at an appropriate time. “According to Yujiro Goto, FX Strategist at Nomura, a delay of a planned sales tax hike in Japan is increasingly likely, which in view of Mr. Goto, should have negative effects on JPY,” explained analysts at Nomura.

Delay to the sales tax hike to be JPY-negative – Nomura

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the technical indicators are barely aiming higher around …read more

Source:: FX Street