FXStreet (Mumbai) – The US dollar stormed its way through 124 barrier and extended gains versus the Japanese yen in the European session, lifting USD/JPY to fresh session highs, as the greenback posed a solid recovery versus its major competitors, bringing an end to its previous corrective slide.
USD/JPY extends beyond 5-DMA
Currently, the USD/JPY pair trades 0.12% higher at 124.27, hovering close to fresh session highs reached at 124.34 some minutes ago. The USD/JPY pair halted its correction and rebounded sharply this session mainly driven by renewed buying interest seen in the US dollar across the board. The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies trades 0.19% higher at fresh session of 96.19, retreating from 95.69 lows.
Moreover, the US dollar also bounced-back against the Japanese currency in anticipation of better than expected US trade balance data due later in the NA session. Markets anticipate the reversal of the massive March spike in the deficit and have predicted a $44.2 billion shortfall for April. Meanwhile, ISM non-manufacturing PMI will also be closely watched.
USD/JPY Technical Levels
To the upside, the next resistance is located at 124.47 (May 28 High) levels and above which it could extend gains 124.93 (June 1 High) levels. To the downside immediate support might be located at 123.74 (June 2 Low) below that at 123.58 (May 29 Low) levels.
(Market News Provided by FXstreet)