USD/JPY to extend the rally towards the 105.60 area

The dollar resumed its rise against most major rivals, pushing USD/JPY to a fresh high for 2021 at 105.27. In the view of FXStreet’s Chief Analyst Valeria Bednarik, the pair has room to extend its advance towards the 105.60 price zone. 

Key quotes

“The US will bring some employment-related data, relevant ahead of the Nonfarm Payroll report to be out on Friday. The country will publish Initial Jobless Claims, foreseen at 830K, January Challenger Job Cuts and Q4 Nonfarm Productivity.”

“The 4-hour chart shows that the 20 SMA keeps providing intraday support while resuming its advance beyond the larger ones. Technical indicators have a limited bullish momentum, but remain well into positive levels, with the RSI consolidating in oversold territory.”

“The next relevant resistance comes at 105.67, the daily high from November 22.”