USD/JPY keeps rising and approaches 105.00

USD/JPY  is about to rise more than 200 pips for two days in a row. Expectations of more stimulus in Japan and a risk on environment continued to weight on the yen. The Japanese currency dropped sharply in the market (again) and is near the levels it had before the UK referendum results.

Back above 20-DMA

During the last two days, the pair has risen around 430 pips. On Tuesday it peaked at 104.97. The rally lost strength only when it approached 105.00. It pulled back modestly afterward and it was trading at 104.74/77 .

The pair rose significantly above the 20-day moving average that stands around 103.15. Price is about to post the first daily close above that moving average since May. If it manages to rise on top of  105.00 the next medium-term resistance could be seen at around 106.10/15. To the downside, the bullish bias is likely to hold as long as price remains above 103.30/50 (June 16 & 22 low / July 1 high).