yen haven appeal tarnishes usdjpy buoyed above 109

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By :  ,  Financial Analyst

Yen's Haven Appeal Tarnishes, USD/JPY Buoyed Above 109.00

Overnight U.S. stocks extended their winning streak to a fourth session with the Dow Jones Industrial Average surging over 2%. 

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).

Related tags: Dollar Forex

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