USD/JPY: Rallying towards a key resistance

The USD/JPY pair extends its unstoppable run, above 112.00 and trading at its highest since April 2019. USD/JPY next relevant resistance level at 112.40 to be closely watched, Chief Analyst at FXStreet Valeria Bednarik reports.

Key quotes

“On Wednesday, the US Federal Reserve published the Minutes of its latest meeting, triggering no market reaction as Powell & Co. reiterated that rates are in the right place, hinting no moves at sight.” 

“Japan didn’t release relevant data at the beginning of the day. The US macroeconomic calendar includes today the usual weekly unemployment claims data, and the February Philadelphia Fed Manufacturing Survey foreseen at 12 from the previous 17.”

“The USD/JPY pair is trading a few pips below its daily high of 112.09, extremely overbought yet with no signs it could change course.”

“April’s monthly high stands at 112.39, the next relevant resistance level. Speculative interest may start taking some profits out of the table if the level is reached, but bulls will likely retain control.”