Morning Market Updates – USD/JPY Makes a Solid Comeback

US Treasury yields and Wall Street had a solid gain yesterday. While the currency ignored the gain and built up its own strength to challenge last Thursday’s high. The price was closed at 109.37 and was steady above the 100 SMA in the 4 hours chart. The immediate resistance was the upper descending trend line on the daily chart which is drawn from July highs. The price has to overcome this resistance to advance further.

Technical indicators are also steady and pointing for another bullish day today with resistance at 109.30/78, 110.10/61 and finally the 100 SMA in the daily chart. If price fails to break the initial resistance then a retracement could be expected at 109.91/80.

The weekly price open had a gap and refused to fill the gap so far. The weekend was mostly spent watching the weather news, Irma proved to be strong but missed the largest populated areas in Florida and spared Miami that could cause huge damage to the dollars.