USD/JPY nears the post-intervention spike at 79.55

On Thursday, the post-BoJ rally of USD/JPY continued unabated. Almost all news was considered USD/JPY supportive. In Europe, the dollar profited from uncertainty on the Greek debt deal. Later in the session, USD/JPY was the exception to a broadbased correction of the dollar as sentiment on risk improved. USD/JPY closed the session at 78.94, compared to 78.43 on Wednesday evening.

Overnight, USD/JPY cleared the 79.00 barrier. This time, the constructive sentiment on risk continued to support the USD/JPY cross rate. The pair might get further support from a rise in core bond yields. So, a test of the key 79.55 (post intervention high) might be on the cards.

Support S1: 78.97: Previous reaction high S2: 78.50 STMA S3: 7820 Break-up area S4: 77.47/36 Reaction low

Resistance R1: 79.11: Reaction high R2: 79.55 : Intervention spike R3: 80.24: August high

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