The global strength of the US Dollar put upward pressure on the USD/JPY exchange rate. The pair gained 86 pips during Thursday’s trading session, thus dashing through the monthly PP, the 200-hour SMA and the upper boundary of the senior channel.
The strong two-day surge has sent technical indicators near the overbought region, so, even if some advances occur during this session, the Greenback should not exceed the 107.20 mark.
It is more likely that a bearish correction prevails in the market today and sends the pair towards the combined support of the 55– and 100-hour SMAs at 106.00.
The US employment data release could alter the market sentiment and guide the pair’s direction during the remaining hours of this trading week.
