USD/JPY advances further to 104.70

The greenback keeps reclaiming ground lost vs. its Japanese peer today, with USD/JPY now hovering over the 104.70 area.

USD/JPY bid after data, Yellen

Spot gathered further traction after US Existing Home Sales rose to 9-year high in May at 5.53 million units, or 1.8%, surpassing expectations.

In the meantime, the pair is extending the rebound from earlier lows in the 104.35/30 band, as risk-on trade keeps prevailing amongst traders ahead of tomorrow’s UK referendum.

Data wise in Japan, advanced Manufacturing PMI is due tomorrow followed by the Leading Index. In the US, Initial Claims, New Home Sales and Markit’s Manufacturing PMI are also due for release.

USD/JPY levels to consider

As of writing the pair is retreating 0.08% at 104.67 facing the immediate support at 103.53 (2016 low Jun.16) ahead of 101.49 (low Aug. 8 2014) and then 101.04 (low Jul.10 2014). On the flip side, a break above 106.87 (20-day sma) would aim for 107.92 (high Jun.7) and finally 108.23 (55-day sma).