USD/JPY extends the vertical rise, tests 108.00

After a brief phase of consolidation seen around 107.40 levels during the late-Asian trades, the USD/JPY pair picked-up significant strength in Europe, now marching north to regain 108 handle.

USD/JPY: Strongest since June 2015

The bulls remain unstoppable in the European session, now pushing the USD/JPY pair to fresh five-month highs, just a whisker away from 108 handle, as the greenback rallies hard versus its main peers in tandem with the treasury yields across the curve.

The US treasury yields cheer renewed optimism spurred by Trump’s intentions of getting back inflation on track and boosting fiscal spending, indicating his policies will not hinder the US economic recovery, as previously anticipated. The major is last seen exchanging hands near fresh five-month tops of 107.96, recording a +1.13% gain on the day.

In absence of any macro news from the US in the day ahead, the major will continue to get influenced by the USD price-action.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 108.00 (multi-month high). A break above the last, the major could test 108.50 (psychological levels) and 109 (zero figure) beyond the last. While to the downside, the immediate support is seen at 106.94 (daily R1) next at 106.71 (5-DMA) and below that at 106 (Friday’s low).

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