- The yen is collapsing at all levels as Wall Street expands its gains.
- The greenback remains under pressure, only gaining against the yen.
The US dollar further appreciated against the yen, after breaking a two-week consolidation range. USD / JPY peaked at 108.66, levels last seen on April 8. At the time of writing, it hovers around 108.55, up almost a hundred pips, having the best performance since May 11.
The upward movement took place despite a drop in the US dollar in all areas. The DXY fell 0.27% to around 97.50, the lowest since mid-March. He remains under pressure in an appetite for risk.
Optimism about the economic recovery continues to drive up stock prices, offsetting the social unrest seen in the United States. The Dow Jones gained 0.50% and the S&P 500 0.13%.
Levels to monitor
The USD / JPY surpassed the 100-day moving average, which stands at 108.30 for the first time in almost two months. The short-term outlook is pointing upwards after crossing the critical threshold of 108.00. As long as it remains above the level mentioned, the bias will favor the greenback.
On the upside, resistance levels are at 108.75, followed by 109.00 / 10 and 109.35 (April high). On the other hand, immediate support stands at 108.30, followed by 107.95 (upper limit of the recent consolidation range).