USD/JPY tracks Nikkei higher, 109 – a whisker away

By FXStreet The extension of gains on the Japanese stocks further fuelled the risk-on sentiment and boosted the bids for USD/JPY, now pushing the rate closer towards 109 handle.

USD/JPY re-takes 109 handle

The dollar-yen pair rebounded higher this Thursday, reversing almost half the previous slide as the improved risk sentiment favour the risk currency USD. At the moment, the USD/JPY pair rises to 108.90, hovering close to session tops printed at 108.94 last minutes, up 0.43% so far. While the Nikkei keeps gains, although moved-off highs to trade above 16,600 levels.

The yen remains largely unperturbed by upbeat Japan’s trade balance data as the broader market sentiment continue to drive the moves in the major heading into the US weekly jobless claims and a couple of Fed speaks due later in the NY session.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 109 (round number). A break above the last, the major could test 109.50 (post-BOJ highs). While to the downside, the immediate support is seen at 108.50/46 (psychological levels/ 5-DMA) and below that at 108.22/00 (1h 100-SMA/ round number).
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Source:: FX Street