USD/JPY to extend the rise once above 104.95

The dollar is up, despite a generally better market’s mood, with USD/JPY trading just below the 105.00 threshold. The pair could extend its advance once beyond 104.95, Valeria Bednarik, Chief Analyst at FXStreet, reports. 

Key quotes

“Japan released the January Jibun Bank Manufacturing PMI, which came in at 49.8, slightly better than the previous 49.7 estimate. Later in the day, Markit will publish the final reading of its US January Manufacturing PMI, foreseen unchanged from the preliminary estimate at 59.1. The country will also publish the official ISM Manufacturing PMI, foreseen at 60 from 60.7 in the previous month.”

“The USD/JPY pair is trading far above its moving averages, with the 20 SMA heading north almost vertically. Technical indicators lack directional strength, but stand well into positive levels, with the RSI around 72.  Another bullish run should be expected on a break above the 104.95 resistance level.”