USD/JPY Hits New Weekly Highs, 109.00 Eyed

USD/JPY Hits New Weekly Highs, 109.00 Eyed

10 May 2016, 06:04
Roberto Jacobs

USD/JPY Hits New Weekly Highs, 109.00 Eyed

USD/JPY continues its relentless move north, now breaking above yesterday's high at 108.60, resulting on new highs reached at 108.78, as the Nikkei 225 soars, last +1.43%.

Yen the weakest, Yen intervention warnings continue

The Japanese Yen is, together with the Australian Dollar, the weakest currency in FX this week, with a return of 'risk on' flows benefits the yen crosses complex.

While the Yen is weakening this week, Japan Finance Minister Aso gave yet another warning to market speculators earlier today, noting that Japan will intervene in FX market if moves are one-sided, Reuters reported. While no specifics in timing nor in level, the rhetoric is certainly being stepped up.

USD/JPY key levels

The next key level for USD/JPY comes at 109.00 round number, ahead of 109.30 (former support level on April 21st) ahead of 109.50 mid round number. On the downside, 108.60/50 becomes immediate support now, ahead of 108.30 (sequence of lows late US Monday), followed by 108.00 round number.


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