USD/JPY rises further, eyes 107.00

USD/JPY  broke higher during the American session as US stocks bounced from the lows and peaked at 106.90, hitting a fresh 1-month high. The pair remains near the highs holding a bullish tone.

The risk tone across financial markets weakened the Japanese yen that is among the worst performers in the forex. In Wall Street the Dow Jones gains 0.30% and the Nasdaq climbs 1.15%. European stock indexes finished with gains of 1.0% on average.

USD/JPY technical outlook

Momentum continues to favor the yen, although short-term technical indicator are approaching extreme levels.  Greg Michalowski‏, Currency Analyst, from Forexlive points out that the pair climbed above the 200-WMA (Weekly moving average). “The 107.00 area is another topside resistance target. A trendline in the daily chart slashes across near that price level.”

Price is moving away from the 106.30 area that limited the upside during the last 30 days. A move below 106.30 would favor a short-term correction, while below 105.00, the pair could open the doors for a decline to 103.80.