Forex: USD/JPY breaks above previous 3.5-year highs

FXstreet.com (Barcelona) - Helped on soaring local share markets with Nikkei climbing to its highest since 2008 above the 13k level, last at 13165, a +4.2% gain to add to yesterday's +2.2% following bold steps taken by the BoJ yesterday, the USD/JPY is last at 96.80, highest level since early Aug 2009. The pair is up +2.8% for the week so far, and more than +11% year to date, moments before BoJ Kuroda speaks to parliament.

According to Valeria Bednarik, Chief Analyst at Fxstreet.com: “The hourly chart shows indicators correcting overbought readings but price pushes higher, which should keep the downside limited, unless until NFP release Friday early US,” the analyst says. USD/JPY is currently printing fresh highs at 96.99 as these lines are written.

Valeria finds support levels at: 96.05, 95.80 and 95.50, while resistance levels at: 96.70, 97.20 and 97.60.