USD/JPY touches the 99.00 level

FXstreet.com (New York) - The USD/JPY pair has continued its upward ascent Monday, briefly touching the 99.00 level during European trading.

Presently, the USD/JPY exchange rate is settling back at 98.89/90, slightly off its earlier highs, though still entrenched in positive territory at +1.04% in these moments.

“The immediate resistance is expected towards the 55-day MA (98.94) while a dip below 97.35 may tempt the pair towards 96.30 before 95.50. Moreover, net speculative JPY shorts were reduced in the latest week, likely mirroring background doubts about the future of Abenomics in recent sessions.” notes Emmanuel Ng of OCBC Bank.

According to Gareth Berry, a Research Analyst at UBS, “We still look for the USD/JPY to reclaim the 100 level and push higher thereafter, and the sooner the BoJ succeeds in exerting downward pressure on JGB yields, the sooner outflows are likely to recommence in earnest.”