USD/JPY to recapture the 106 level on a break above 105.80

USD/JPY is up this Tuesday, trading near a daily high of 105.73 as the market is cautiously optimistic ahead of Fed’s speakers and the presidential debate. The pair is biased higher and needs to break above 105.80 to accelerate the upmove, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“The greenback remains under pressure against most major rivals, as investors maintain a cautiously optimistic stance ahead, amid hopes for a US coronavirus aid package and a Brexit trade deal. US Treasury yields ticked lower, ahead of a bunch of Fed’s speakers and the first US Presidential debate that will take place later in the day.”

“From a technical point of view, the USD/JPY pair is biased higher, although without enough strength. The 4-hour chart shows that technical indicators remain within positive levels, slowly grinding higher. Also, the pair is above its 20 and 100 SMA, which converge in the 105.40 price zone, while a mildly bearish 200 SMA caps advances around 105.80.”

“Beyond 105.80, the USD/JPY pair could accelerate north towards 106.25, the next relevant resistance level.”