USDJPY hit resistance

The USDJPY pair hit the resistance level (B) from June 2020, after it gained 6,5% year to date. The course started its ascent in the beginning of January, cut straight through the 107.40 – 107.00 resistance zone (A) and formed a piercing pattern when reached zone B. Investors bought dollar recently as macroeconomic data hinted that inflation might pick up in the near future.

 Treasury yields rose which is not the best environment for equities, especially for technology stocks. As stocks sold off, investors looked for safe heaven and bought the dollar. If the bulls still had some appetite and pushed the USDJPY through zone B, the next level of resistance would be at 110.90 – 111.60 (C). Should the trend reverse, previous resistance (A) would become the first support, which by then could be reached by the 50 moving average.