USD/JPY flips to bullish in the near-term, next resistance at 103.90

The greenback continues to recover, and the USD/JPY pair trades at daily highs above the 103.60 price zone. More near-term gains are at sight with next resistance seen at 103.90, as FXStreet’s Chief Analyst Valeria Bednarik notes.

Key quotes

“The pair’s strength comes from government debt yields, which surged to multi-month highs on Wednesday, following news that US Democrats took control of Senate.”

“The US will publish today the November Trade Balance and employment-related figures. Initial Jobless Claims for the week ended January 1 are foreseen at  833K. Later into the session, the country will release the December ISM Services PMI, foreseen at 54.9.”

“The USD/JPY pair is shrugging off its bearish potential and could extend its advance, according to the near-term technical picture. The next relevant resistance is 103.90, with gains above the level opening doors for a steeper advance.”