Forex: USD/JPY adds to gains during Asia session, resistance at 98.50 in focus

FXstreet.com (Barcelona) - The USD/JPY continues to edge higher during Asia trade, currently up 34 pips at 98.10. This is following an impressive day for the pair which finished the New York session up 113 pips at 97.72. Later in the session at 23:50 GMT, a number of economic reports will be released out of Japan. The reports include Foreign Bond Investment, Merchandise Trade Balance, and Import/Export data.

“Despite recovering some ground, the USD/JPY was unable to run higher on improved market sentiment, and found sellers around 98.00. The hourly chart shows 100 and 200 SMA’s converging above current price as indicators stand around their midlines, which favors the downside at the time being; short term support is at session low of 97.30, and once below the pair may attempt to retest the 96.50 area today. On the other hand, the upside seems well limited around 98.40, and only steady gains above this last will deny the bearish bias of the pair,” noted Val Benarik of FXStreet.com

The FXStreet.com Trend Index remains strongly bullish on the daily chart, with the OB/OS level reading neutral. Keep an eye on the 98.50 level ( 9 dma) which has a good history of success in acting as support and resistance in the past. A close above 98.50 could open the doors for a rest test of the highs at 99.94. First support sits at 97.54 9 (low of the Asia trading session), followed by 96.60 (low price on April 16th).