FxWirePro: USD/JPY bounces off 21-EMA support, risk barometer rises as markets brace to welcome Biden
USD/JPY chart - Trading View
USD/JPY was trading 0.30% higher on the day at 103.99 at around 05:10 GMT, slightly lower from session highs at 104.08.
The pair has bounced off 21-EMA support and is testing resistance at 55-EMA at 104.02. Decisive break above will see further gains.
The risk barometer rises as markets prepare for US President-elect Joe Biden and virus woes recede amid vaccine optimism.
Yellen’s speech will be the key for markets. The ex-Fed Chair is up for her first Senate speech and her indirect support to Biden’s stimulus favors the risk-takers.
The pair finds series of resistances upto 104.65. Break above daily cloud will fuel upside. Next major bull target lies at 200-DMA at 105.79.
On the flipside, price action has bounced off 21-EMA support. Weakness only on break below. Major support aligns at 102.45 (trendline).