USD/JPY extends gains above 108.00

The Japanese yen remains weak across the board despite the price correction of equities in Europa and in Wall Street. USD/JPY rose further and printed a fresh 1-week high at 108.58.

The pair remains near daily highs, currently trading at 108.40/45, up more than a hundred pips from Friday’s closing price and having the best day since April 28. It reached the highest level since the day after the Bank of Japan decided to leave monetary policy unchanged.

It started to rise during the Asian session after comments from Japan’s finance minister, Taro Aso, about being ready to intervene if the yen rises further. The currency is the worst performer in the market on Monday.

USD/JPY levels to watch

To the upside, resistance levels could be seen at 108.55/60 (daily high), 108.75 (20-day moving average) and 109.80/85 (Apr 20 & 21 high). On the opposite direction, support might lie at 108.00 (psychological), 107.50/60 (last week high / Apr 9 low) and 107.06 (daily low).