USD/JPY: Bulls on a Roll, Regains 109.50 and Beyond
The bid tone around the USD/JPY pair keeps growing bigger, driving the rate to the highest levels since April-end above 109.50 levels.
USD/JPY: 50-DMA at 109.88 in focus
The Japanese currency remains heavily offered against its American counterpart in the European session, as the underlying risk tone continues to favour the higher-yielding/risky assets at the expense of the safe-havens such as the JPY. At the moment, the USD/JPY pair eases-off highs reached at 109.65 and now trades at 109.55, still up +0.50% on the day.
Moreover, expectations of a better US inflation report also keep the greenback underpinned across the board, which in turn contributes to the upside in USD/JPY. Looking ahead, the US calendar offers the much-awaited US CPI print, followed by the industrial production and housing data ahead of the Japanese GDP data due tomorrow.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 109.88/110 (50-DMA/ psychological levels). A break above the last, the major could test 110.50 (round figure). While to the downside, the immediate support is seen at 108.98 (5-DMA) and below that at 108.50/35 (20-DMA).