USD/JPY to see further gains on a break above the 105.80 last week high

USD/JPY is trading at the upper end of its previous week´s range in the 105.60 price zone as speculation that US President Trump is recovering from COVID-19 is boosting the mood. The pair needs to break above last week high at 105.80 to turn bullish in the short-term, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“The market’s mood improved after a bumpy weekend, with the sentiment gyrating around US President Trump’s health. The leader of the world’s largest economy contracted COVID-19 last Friday and was later translated to a medical facility. Contradictory headlines throughout the weekend spurred concerns, although, at this point, news suggests that he is recovering. Equities are firmly up, as well as US Treasury yields, pushing USD/JPY higher.”

“The 4-hour chart shows that it continues to develop between moving averages, with a directionless 200 SMA capping advances currently at 105.70. Technical indicators crossed their midlines into positive levels, but lack clear directional strength.” 

“The USD/JPY pair traded as high as 105.80 last week, the level to surpass to confirm additional gains ahead.”