USD/JPY Clings to Gains Near 108.80
The rally in the greenback seems to be losing some momentum on Monday, with USD/JPY clinging to gains in the 108.80 area.
USD/JPY gains capped near 109.00
The pair has almost faded the overnight spike to the boundaries of
109.00 the figure, although the up move run out of steam soon afterwards
and prompted the ongoing leg lower to the 108.70/65 band.
In the meantime the dollar remains supported by recent auspicious
releases in the American economy, with Friday’s US Retail Sales and
Consumer Sentiment beating expectations, although uncertainties still
persist in the US interest rate market regarding the likeliness of
further rate hikes by the Fed.
USD/JPY levels to watch
As of writing the pair is advancing 0.14% at 108.80 facing the immediate
resistance at 109.40 (high May 12) followed by 110.55 (55-day sma) and
finally 111.92 (high Apr.28). On the flip side, a breach of 105.52 (2016
low May 3) would open the door to 105.18 (monthly low Oct.2014) and
then 101.97 (monthly low Aug.7 2014).