USD/JPY needs to break the 105.60 mark to gain bullish momentum

The USD/JPY pair is recovering from an intraday low of 104.92, trading around 105.30. USD/JPY has limited bullish potential and needs to advance beyond 105.60 to gain upside traction, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“In the US, the focus will be on the Federal Reserve chief Jerome Powell, who will testify before Congress for the first time in the Biden era. The Semiannual Monetary Policy Report may include hints on the future of QE. Powell’s prepared remarks will be released ahead of his speech.”

“USD/JPY has a limited bullish scope in the near-term. The advance could gather momentum if the pair surpasses the 105.60 level.”