The U.S dollar has recovered upside momentum against the Japanese yen, after the Federal Reserve struck a bullish tone towards U.S inflation at Wednesday’s policy meeting. The USDJPY pair has now broken above key daily resistance, with price-action currently trading at the highs of the week, around the 109.70 zone. Going forward, the upcoming release of the ISM Manufacturing data and tomorrow’s January Non-Farm Payrolls job report, should dictate the next directional move in the pair.
Bullish momentum is gathering in the USDJPY while price trades above the 109.44 level, further upside towards 110.18 and 110.58 seems possible.
Should sellers push the USDJPY pair below the 109.44 level, we may see a correction back towards the 108.98 and 108.58 levels.
