USD/JPY: sentiment remains around more easing keeping Yen offered

USD/JPY was a 30 pip round trip in the open of Tokyo, with bets still being placed on the offer in the Yen with Abenomics 2.0 and following the lead from Wall Street at all time closing highs again, albeit small gains over the session.

Overnight, the USD/JPY traders forced the bid from the  daily low of 105.26 taking it to the 106.00 level where offers are mounted. For the day ahead, it is scheduled to be quiet and the rest of the week looks to much of the same, however, risk sentiment will continue to be the main driver and keeping an eye on sentiment for a Fed hike this year, driving yield differentials across the board.  

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that, "The pair has traded as high as 106.31 last week, and the 1 hour chart shows that intraday declines towards the 105.00 level keep attracting buying interest," adding," Also, and in the same chart, the price continues developing well above a bullish 20 SA, currently around 105.15 whilst the technical indicators remain within positive territory, although with no upward strength."

USD/JPY risk: bullish bias

"In the 4 hours chart, the Momentum indicator bounced from its 100 level, heading now north ahead of the Asian opening, whilst the RSI indicator also heads higher, around 67, maintaining the risk towards the upside," argued Valeria Bednarik.