The Japanese yen weakened against its major counterparts as the risk appetite rose because the crude oil prices and stock markets gained. The crude oil price rose to above $40/bbl while European stock market made a rally towards its 3-month high.
The rise of risky assets is bad for the Japanese yen as safe haven asset, which becomes the most wanted asset when instability in financial market occurs and uncertainty is in the air.
USD/JPY currently is testing the intraday key resistance at 109.476. If the price managed to break the resistance, the price possibly will continue to rise up to 109.925-110.301.
Note that hourly stochastic has crossed down. Technically, there is a possibility for a correction move to the Fibonacci support area at 108.846-108.456. As alternative strategy, watch for bullish signal confirmation on a pull-back move to within the Fibonacci area with target at 109.087 and 109.476 in extension
Be careful if the price managed to break below the support at 108.456 because it will turn the intraday bias to bearish and possibly will be followed by a bearish move to 108.179-107.826.
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