USD JPY Breaks Monthly Resistance, Eyes 104.6

USD JPY Breaks Monthly Resistance, Eyes 104.6

The USD JPY continues to trade with optimism as it breaks the key monthly resistance level of 104.

The pair may strive further and made it past the 104.6 ceiling in the short run.

Adding to the optimism, a consolidating bullish MACD will direct buyers towards a clear 50-day SMA level at 104.71.

On the other hand, prospects that the pair could fall back to the hands of the bears still lingers. 

The recall to the 104.0-point threshold remains clear and could further slide down should it fails to break 104.6.

In that scenario, a 103.2 to 102.1 range may be tested.

In the latest foreign exchange charts, the duo currently settled at 104.46 after opening at 104.2. This translates to an increase of 0.18% for intraday trading.

Some analysts noted that the USD/JPY pair might rally further to reach the 105 to 105.7 resistance level.

Currently, the dollar retraces gains made in yesterday’s trading session with investors keeping strict monitoring on the Brexit updates.

Any positive development will be quick to ignite the slowing but still a present risk-on sentiment in the market.

With this, the USD index, which tracks the performance of the greenback against other leading currencies in the basket, edged down by 0.1%.

It settled at 91.050, only conservatively above its low in the last two and a half years.

Supporting the dollar’s stability in the short term is the trudging of the next stimulus package back in its home country.

The negotiators from both parties are still unable to communicate their differences on the amount of the economic cushion, holding investors within the reach of safe-haven assets for now.

Pound Reverts Gains with No-deal Looming

Meanwhile, the pound is not performing any better than its American counterpart.

In the latest charts, the sterling tumbled by 0.4% to a session low of $1.3311 for the day before steadying at $1.3345.

According to reports, the European Commission and the United Kingdom remain deadlocked on key issues involving fisheries, fair competition, and sanctions.

Prime Minister Boris Johnson flew to Brussels earlier in the week in the final attempt to seal a deal with his counterpart.

The former allies have until Sunday to decide on the post-separation trade deal before matters cause “irreparable damage.”

According to experts, the absence of the post-Brexit trade deal would be too costly to handle. Furthermore, it will, in turn, ignite downward pressure on the sterling pound.

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