USDJPY Recovery Continues, Support Holds Above 110.00
On the long side of the US Dollar, the backdrop around USDJPY remains of interest. The pair came into the year screaming lower on the back of significant Yen-strength that appeared to be largely driven by a safe-haven run. But since the second day of the New Year, prices in the pair have largely remained in varying states of recovery.
Last week, price action in the pair had begun to build in a short-term range atop intermediate-term resistance. this resistance is focusing in on the zone from 109.67-110.00. And coming into this week, bulls pushed through, helping to set a fresh 2019 high in the pair. as prices ran up-above the 111.00 level. But, that theme appeared rip for a pullback, and prices pushed down to the 110.30 level of support that was noted; after which bulls began to make another forward push.
The big question at this point is whether the yesterday’s retracement was enough; or whether prices will need to take a deeper pause to re-test support at that prior area of resistance that held for almost a full month at 109.67-110.00.