The Dollar/Yen pushes higher as the Bank of Japan reiterates its belief that the Japanese economy still needs monetary stimulus. The BOJ attributed the continuation of the stimulus program to the subdued inflation in Japan. In addition to the weakness on the yen’s side, the Dollar/Yen pair pushed higher following the strengthening of the US Dollar. The US Dollar formed a new 16-month high as US consumer confidence figure printed better than expected results and rose to an 18-year high.
The pair breaks above the 113.08 resistance level exposing the 113.78 level ahead. The break was followed with a strong bullish momentum signal which is the cross of the 50-period moving average above the 200-period moving average. Adding to the bullish momentum, the 13-period moving average is trending upwards and edging closer to prices.
Support: 112.56 / 112.16
Resistance: 113.08 / 113.78