FXStreet (Mumbai) – The USD/JPY pair was caught by renewed bid-wave after the price pierced through the 122.50 barrier and extended to the upside, with 123 back in sight.
USD/JPY looks to regain 123 handle
Currently, the USD/JPY pair trades 0.16% higher at fresh session highs of 122.74, fighting hard to extend beyond hourly 100-SMA located at 122.80. The USD/JPY pair staged a solid recovery from weekly lows and rallied near 50-pips in tandem with the US dollar index. The USD index, which measures the strength of the greenback against a basket of major currencies, spiked to fresh multi-month highs at 100.13, recording a 0.41% rise on the day.
Also, improving risk-sentiment also boosts the demand for riskier assets such as equities, the USD etc., contributed to the recent strength in the major. Markets now gear up for a busy US session ahead, with the US durable goods data, Core PCE index, personal spending, new home sales and revised consumer sentiment lined up for release.
Recall that the US markets remain closed tomorrow in observance of Thanksgiving Day.
USD/JPY Technical levels to watch
The prices trade near session lows and finds immediate support at 122.20 (Nov 16 Low) below which 121.70 (200-DMA) would be tested. To the topside, the immediate resistance is located at 122.97 (1h 200-SMA). A break above the last, the major could test 123.28 (Nov 23 High).
(Market News Provided by FXstreet)