USD/JPY chart - Trading View
USD/JPY was extending previous session's spike and was trading 0.12% higher on the day at 104.56 at around 03:15 GMT, after closing 0.59% higher on Monday.
The major marked the strongest gains in two weeks on Monday along with rise in S&P 500 futures and US 10-year Treasury yields which jumped on expectations of a smooth transition of the US presidency.
US President Donald Trump ordered General Services Administration (GSA) to formally begin the power-shift process to President-elect Joe Biden.
Further, Bank of Japan (BOJ) Governor Haruhiko Kuroda reiterated the central bank’s readiness to implement additional easing measures, if needed.
BoJ Executive Director Kimihiro Etoh said in a parliamentary address on Tuesday that BOJ is expected to spend up to $478 million under the bank aid scheme.
We see a shift in the intraday indicators for the pair. Price action has edged above 200H MA. 5-DMA has turned along with the RSI which is now biased higher.
Price action has edged above 20-DMA and we see scope for test of 55-EMA at 104.98. Decisive break above 55-DMA could help carry forward the bullish momentum.
Major trend in the pair is still bearish and breakout above daily cloud required for bullish continuation.
