FxWirePro: USD/JPY consolidating around 110.71, bias is bullish
USD/JPY rose on Tuesday as investors regained some risk appetite after the first round of the French presidential election delivered the result they had hoped for and that pollsters had forecast. The first-round outcome …
USD/JPY rose on Tuesday as investors regained some risk appetite after the first round of the French presidential election delivered the result they had hoped for and that pollsters had forecast.
The first-round outcome spared investors their worst-case scenario of Le Pen facing off against far-left eurosceptic Jean-Luc Melenchon, who had surged in the polls in recent weeks, though he never broke into the top two.
This increased confidence meant that political risk was being priced out ahead of the second round.
The ongoing upside is set to continue for this pair as the support level at 1.0961 is likely to act as strong barrier to the bears.
To the upside, the strong resistance can be seen at 107.52, a break above this level would take the pair towards next resistance level at 108.19.
To the downside immediate support can be seen at 106.46, a break below this level will open the door towards next level at 105.65.
