Accommodation U.S. shares extended their winning streak to a fourth session, with the Dow Jones Industrial Average rising by over 2%.
Investors were encouraged by the Automatic Data Processing (ADP) Employment Report, which showed that U.S. the economy lost “only” 2,760 million private jobs in May, much better than expected -9,000 million and -19,557 million in April.
Signs of reducing social unrest in major U.S. cities helped too.
Assets that are largely expected to be safe havens – including the U.S. Treasury, gold, yen (and to some extent the US dollar) – have weakened in price amid growing investor optimism, leading to a growing risk appetite.
The yen sees its port appeal spot as the USD / JPY rose 0.3% overnight after a 1.0% jump on Tuesday.
Yenten’s sales pressure is also expected to be extended amid continued coverage of USD / JPY short positions.
On an Intraday 30-minute chart, the USD / JPY has swung to the Upper Bollinger band, with that intraday bias being bullish.
In fact, a rising trend line drawn from June 2 remains intact.
Bullish investors can set a Key Support to 108.80, which is around the rising 50-period moving average and the Lower Bollinger Band.
Overhead resistance is expected at 1 p.m. 109.30 (161.80% Fibonacci extrapolation from Key Support), which was last seen in early April.
Over 109.30, the next resistance would be found at 109.60 (last seen in late March).