USD/JPY touches a high of 106.34 on the day

USD/JPY D1 13-03

The pair is now looking to keep a break above the 106.00 level with resistance next seen from the 50.0 retracement level of the recent swing move lower @ 106.71.

Yen crosses are once again pushing higher on the day, with the loonie also posting decent gains at the moment with CAD/JPY up by 2.5% above 77.00. Notably, that has also seen USD/CAD fall back lower by over 1% to 1.3783 currently - down by 140 pips today.

European equities are posting solid gains above 3% for now with Italy recovering by over 6%, while US futures are also keeping near 4% gains for the moment.

The risk bounce is still holding up for the time being but Wall Street is a whole different beast to deal with, especially after the sharp fall over the past two days and with the weekend approaching - and who knows if the Fed has anything more up its sleeve.

For USD/JPY, the technical picture looks to be suggesting at a near-term breakout in the recent range and buyers will get added conviction if the risk mood keeps up as well.