On Wednesday, the Japanese currency strengthened somewhat against the US dollar as market players turned to the yen as a refuge currency amid falling Tokyo stock market after a six-day growth.

Current situation

Though the couple and grew yesterday, it seems that its rally runs out of steam as the pair approached the strong resistance 107.00. The tool set a new 4-week highs at around 106.85. Resistance is located at 107.00, support - at 106.00.

MACD is in the positive zone, histogram grew that speaks in favor of the buyers. RSI Oscillator is located near the overbought zone, which is a signal to buy.

The price has remained above the 50-EMA on the hourly chart, the moving average of 50, 100 and 200 upward direction, which is considered a buy signal.

Forecast USD / JPY today

The pair approached the level of 107.00. The breakdown of this resistance level will send the instrument to the level of 108.00. The opposite scenario implies a decline to 104.50.

Based on materials from Fort Financial Services