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).