yen haven appeal tarnishes usdjpy buoyed above 109
Yen's Haven Appeal Tarnishes, USD/JPY Buoyed Above 109.00
Investors were encouraged by the Automatic Data Processing (ADP) employment report, which showed that the U.S. economy lost "only" 2.760 million private jobs in May, much better than -9.000 million expected and -19.557 million in April.
Signs of abating social unrest in major U.S. cities also helped.
Assets widely expected to be safe-haven ones - including U.S. Treasuries, gold, the yen (and to some extent, the U.S. dollar) - have weakened in price amid growing investor optimism, which leads to growing risk appetite.
The yen is seeing its safe-haven appeal tarnish, as USD/JPY advanced 0.3% overnight, following a 1.0% jump Tuesday.
Also, the yen's selling pressure is expected to extend amid continued covering of USD/JPY short positions.
On an Intraday 30-minute Chart, USD/JPY has swung to the Upper Bollinger Band keeping the intraday bias as bullish.
Source: GAIN Capital, TradingView
In fact, a rising trend line drawn from June 2 remains intact.
Bullish investors can set a Key Support at 108.80, which is around the ascending 50-period moving average and the Lower Bollinger Band.
Overhead Resistance is expected at 109.30 (161.80% Fibonacci extrapolation from the Key Support), which was last seen in early April.
Above 109.30, the next resistance would be encountered at 109.60 (last seen in late-March).
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