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USDJPY Looking for Direction at Six-Month Highs

USDJPY Japanese Yen
USDJPY Japanese Yen

USDJPY trades slightly higher, adding 0.09% at 109.56. The pair is trading in a narrow trading range close to six-month highs. Japanese Yen is under pressure since last  week after the Phase One deal between the US and China and the clear victory of the Conservatives in the UK election.

Investors dump safe-haven assets like gold and Japanese yen as the risk appetite increases. Meanwhile today the USD boosted by demand across the board and especially against GBP and EUR.

Earlier during the Asian trading session, the Japan Merchandise Trade Balance Total came in at ¥-82.1B beating forecasts of ¥-369B in November. The Imports (year over year) came in at -15.7%, below analysts estimates of -12.7% while the Exports came in at -7.9% also above forecasts of -8.6% in November.

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USDJPY Capped at 109.70

USDJPY tested the 50-day moving average last week that provided a sharp rebound on Thursday and drove the price up to six-month highs. The pair consolidates around that level the last three trading sessions looking to initiate a leg higher.

USDJPY short term momentum is positive as it trades above all significant daily moving averages. On the upside the pair will meet resistance at 109.62 the daily high. Next supply zone stands at 109.70 the recent top. A credible break above might drive the price up to 109.92 the high from May 26th.

On the downside, immediate support for USDJPY stands at 109.39 today’s low. Next level for the bears stands at 109.25 the low from December 16th. More bids will emerge at 108.75 the 200-day moving average.