USD/JPY Climbs Further to 109.40 as USD Demand Picks-Up
The demand for the US dollar is on the rise and further gains traction as the North American desks get underway, driving USD/JPY to fresh more-than 1-week highs just shy of 109.50 levels.
USD/JPY trades above all major hourly SMAs
The greenback keeps pushing higher versus its Japanese counterpart heading into the US open, reversing almost half the BOJ’s status-quo-led extensive slide. At the moment, the USD/JPY pair rises 0.85% to trade at 109.33, having posted fresh 10-day highs at 109.40 levels.
The prevalent risk-on tone across the markets coupled with higher USD demand keeps the bullish streak in the USD/JPY intact, as focus now shifts towards the US employment claims data due out shortly. Besides, speeches from Fed officials Rosengren and George will be closely heard for fresh hints on the Fed rate hike outlook for this year.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 109.50 (psychological levels). A break above the last, the major could test 110.25 (50-DMA). While to the downside, the immediate support is seen at 108.66/54 (daily pivot/ 5-DMA) and below that at 108.00 (round number).