USD/JPY finds support at 108.80, revisits daily highs

The retreat in the USD/JPY pair met fresh offers near 108.80 region, and the major swung back the familiar range above 109 levels amid rallying European stocks.

USD/JPY supported well above hourly 200-SMA at 108.70

The Japanese currency continues to extend weakness against the American dollar in the European session, as the underlying sentiment remains favourable towards risk assets such as the equities and thus, weighs down on the safe-haven yen. At the time of writing, USD/JPY trades at 109.14, trying another attempt to take out daily highs at 109.22, up 0.29% on the day. Meanwhile, the German DAX jumps +1.65%, the UK’s FTSE rises +0.50% and the pan-European benchmark, the Euro Stoxx advances +1.28%.

More so, a renewed bout of buying interest seen in the oil prices in Europe also helps lift overall market sentiment and provide further boost to the USD/JPY pair. In the day ahead, the major will get influenced by a set of US housing data, while the broader market sentiment will also play a major role.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 109.22/55 (daily high & R1). A break above the last, the major could test 109.77/110.04 (Apr 15 high/ 20-DMA). While to the downside, the immediate support is seen at 108.70/65 (1h 200-SMA/ 10-DMA) and below that at 108.57/50 (Apr 15 low/ psychological levels).