USD/JPY: Limited bullish momentum while below 105.95

USD/JPY is trading at daily highs near the 105.80 level. The pair has lost its bearish strength but needs to break above 105.95 to reinforce the bullish case, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“The greenback is generally weak following US Federal Reserve chief Jerome Powell´s testimony before Congress on Tuesday. Equities advanced and the dollar fell after the event, as Powell hinted quantitative easing would stay for long. He also poured cold water on Treasury yields, which have stabilized near their recent highs.”

“The USD/JPY pair is trading at daily highs and at risk of extending its advance, despite a limited bullish momentum in the near-term. The bullish case will be stronger if the pair manages to clear the 105.95 resistance area.”