Forex: USD/JPY rising at escape velocity at 101.32/39

FXstreet.com (Barcelona) - The USD/JPY steadfast rise has thus far found no signs of ending Friday, as an overnight push was met with further buying of the dollar against the yen today. European trading has painted this same picture, with the pair now reach session highs in these moments as the yen thrashing continues unabated. In these moments the cross is now trading at 101.32/39, up a stellar +0.71% above its opening.

Following a break above the 101.15 resistance, the Mataf.net analyst team identifies the next short-term resistive structures for the USD/JPY at 101.64, then 102.65, and finally 103.95. Alternatively, a paring of recent gains, coupled with a massive pullback will result in a testing of supports at 99.34, onto 97.84, and finally 97.04.

“The yen was already looking vulnerable after the USD/JPY broke above 100 overnight. Now, these changing flow dynamics are likely to help keep the upswing alive. We raise our 1-month and 3-month USD/JPY forecasts to 102.00 and 105.00 respectively (previously both stood at 95.00).” notes Gareth Berry, a Research Analyst at UBS.