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FXStreet (Moscow) - USD/JPY reached the intraday high at 105.31, but retraced towards current level of 105.21; the bullish dynamic remains strong ahead of Japanese cabinet reshuffle.
Per aspera ad astra
USD/JPY is on the rise. Now that the pair is above the psychologically important level of 105.00 the chances are that USD will hit a new high of 2014 against JPY. There are several factor that play against JPY: difficult geopolitical situation, positive US macroeconomic environment, speculations that pension funds may shift toward riskier assets, damping demand for the Japanese currency, to name just a few. Today investors might want to focus on US ISM indicator and factory orders. Should the data prove the strength of the American economy, USD/JPY might rush towards the initial resistance of 105.44 From the technical point of view, this is a strong resistance level that may cap the upside for the time being.
What are today’s key USD/JPY levels?
Currently, USD/JPY is trading at 105.21 with the support below at 105.07 (current Asian low), 104.50 (5-dma) and 104.28 (50% retracement of 103.55-105.01); the resistance is seen at 105.31 (current Asian high) and 105.44 (2014 high).