The Japanese yen stayed muted as the country’s GDP contracted slightly more than expected in Q1.
The surge above 109.70 is an indication that buyers have regained control after a two-week-long consolidation. The US dollar is pulling back after the RSI overshot to 80.
Buying interests are likely to be found at the demand area between 108.65 and 108.90. Further down, a drop to 108.30 may extend the consolidation.
On the upside, bulls could trigger a broader rally if they succeed in clearing the resistance at 109.70.