USD/JPY faces next resistance at 113.75 – Danske Bank

The pair’s upside momentum could extend to the 113.75 level, suggested Chief Analyst at Danske Bank Arne Rasmussen.

Key Quotes

“USD/JPY yesterday broke above the high from July at 113.19 driven by general USD strengthening and risk appetite”.

“The Summit meeting between Prime Minister Abe and US President Trump has decreased the near-term risks for the cross as an escalation of the trade tensions between the US and Japan appears to have been avoided”.

“With no yen-related risk factors in sight near term, risk appetite is likely to be directional for the cross. Investors are very short JPY, according to the latest IMM data, indicating a high correction risk”.

“Technically, resistance is seen at 113.75, 114 and around 114.50, while the key support level is likely to be found just below 111 at the 100-day moving average line”.