USD/JPY to extend the recovery on a break above 106.35

The USD/JPY pair, which extended its advance to 106.21 early Asia, currently trades around the 106.00 level. Bulls will have better chances above 106.35, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“The US will publish today the Philadelphia Fed Manufacturing Survey, foreseen in August at 21 from 24.1 in the previous month. Also, the country will unveil Initial Jobless Claims for the week ended August 14, foreseen at 925K from 963K in the previous week.”

“The short-term picture is neutral-to-positive, as the pair is barely holding above its 20 and 100 SMA, with the shortest still heading south. Technical indicators, in the meantime, re-entered positive territory, but lack strength enough to confirm a new leg higher. The next Fibonacci resistance level is at 106.35, with a break above it opening doors for a steeper recovery.”