USD/JPY rallies on hopes of a DC resolution; still below resistance at 98.72

FXstreet.com (Barcelona) - The USD/JPY posted nice gains Wednesday on renewed optimism that the DC fighting would come to a close for now.

USD/JPY traders waiting for “the deal” to be official

The USD/JPY is drifting higher early in the Thursday session after an overall positive day for the cross as investors once again moved out of safety assets and out of the “American Armageddon” trade.

USD/JPY traders will clearly be ready to react to the news out of Washington over the next several hours but also get to react to weekly jobless claims data and the Philly Fed Manufacturing Survey in the US later in the Thursday session.

Technical outlook for USD/JPY

Technicians note that the first resistance for USD/JPY comes in at the 10/1 peak at 98.72. Possible support for USD/JPY is at 98.56 and 98.18 – both are intraday pivots established in the last few trading sessions.

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