USD/JPY to see a rise towards 106.00

USD/JPY is trading marginally higher this Wednesday, as the greenback retains its strength against most major rivals. The pair is technically bullish, with investors eyeing an advance towards 106.00, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Financial markets have finished digesting the latest news on the US presidential election and progress in coronavirus vaccines. At the same time, the number of contagions keeps rising. The US reported a record high of roughly 135K new cases on Tuesday, while the global daily total is above 500K. The pandemic is still taking its toll on economic progress, although the US has long ago decided to maintain its economy open.”

“The short-term picture continues to favor the upside, with a probable bullish target at 106.00, where the USD/JPY pair has a daily descendant trend line coming from March high. The 4-hour chart shows that the 200 SMA continues to provide support, while the 20 SMA keeps advancing below it. Technical indicators, in the meantime, consolidate within overbought levels without signs of upward exhaustion.”