The cross continues to edge higher during Asia trade, currently up 34 pips at 98.10. This is following an impressive day for the pair which finished the New York session up 113 pips at 97.72. Later in the session, a number of economic reports will be released out of Japan. The reports include Foreign Bond Investment, Merchandise Trade Balance, and Import/Export data. Despite recovering, the USD/JPY was unable to run higher on improved market sentiment, and found sellers around 98.00. The hourly chart shows 100 and 200 SMA’s converging above current price as indicators stand around their midlines, which favors the downside at the time being; short term support is at session low of 97.30, and once below the pair may attempt to retest the 96.50 area today. On the other hand, the upside seems well limited around 98.40, and only steady gains above this last will deny the bearish bias of the pair.
EasyForexNews Research Team