USD/JPY Extends Winning-Streak for 8th Straight Session
The bullish tone behind the US dollar keeps growing bigger as we step into the key week this Monday, driving USD/JPY further towards 114 handle.
USD/JPY on a roll higher this Easter Monday
The dollar-yen pair prolongs its upward trajectory for the eight consecutive sessions as the USD bulls continue to pressure the upside on the back of rising prospects of a Fed rate hike next month. At the time of writing, USD/JPY clocks fresh nine-day high at 113.69, aiming to test 50-DMA located at 114.32, up 0.50% so far this session.
The major also remains boosted on the back of risk-on rally in the Japanese stocks, while thin trades and low volatility extend into yet another trading session as most Asian regions observe Easter Monday holiday. Meanwhile, the Japanese Nikkei rallies +0.77%, while the Shanghai Composite gains 0.70%.
Looking ahead, the US dollar is expected to remain underpinned on hawkish comments from the Fed officials, with the latest from Fed Bullard, hinting a rate hike as early as April. While a fresh batch of US macro data will be eagerly watched in the day ahead, particularly after upbeat US Q4 GDP revision. Fed’s preferred PCE index, personal spending and pending home sales data are lined up for release later in the NA session.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 114 (round number). A break above the last, the major could test 114.32/45 (50-DMA/ Mar 10 High). While to the downside, the immediate support is seen at 113.10/00 (5-DMA/ 1h 50-SMA) and below that at 112.89 (20-DMA & daily S3).
(Market News Provided by FXstreet)