USD/JPY to gain positive momentum on a break above 107.95
USD/JPY is trading near a daily high of 107.78, neutral in the short-term, although with the risk skewing to the upside. The pair would gain bullish momentum on a break above 107.95, FXStreet’s Chief Analyst Valeria Bednarik reports.
“Japan released the preliminary estimate of the May Leading Economic Indicator, which unexpectedly improved to 79.3 from 77.7, better than the 73.2 expected. The Coincident Index, for the same period, however, contracted to 74.6 from 80.1. The country also published Overall Household Spending, down by 16.2% in the year to May.”
“In the 4-hour chart, the USD/JPY pair is trading above all of its moving averages, which remain flat, as technical indicators are directionless just above their midlines.”
“The pair has an immediate Fibonacci resistance at 107.95, the level to surpass to see it gather additional bullish momentum.”