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USD/JPY breaks through 98.50

FXstreet.com (Barcelona) - The USD/JPY is extending its gains by breaking above the 98.50 handle at the moment, with the highest at 98.55 The latest push comes after a retest of 92.20/30 support during the early hours of Tokyo.

As suggested in an earlier analysis, the upside resolution above 98.30 was a pre-requisite for further upside to come, with the next upside target around 92.70 - May 8 low - followed by a potential attack towards 98.00/10 - June 10 swing high -.

The recovery in USD/JPY comes in line with the views shared by Tim Riddell, Head of Global Research at ANZ, last week, in which Riddell said that the latest rebound has triggered a test of the 98.00-100.00 area. However, Riddell sees the move up as part of a consolidation off 103.75, with only a close above 101.30-60 could signaling an early return to JPY weakness.

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