USD/JPY extends bullish run, hits new 3-month highs

The USD/JPY pair ended a brief phase of consolidation and regained poise ahead of the European opening bells, now pushing the rate higher to hit fresh multi-month tops above 105.30 region.

USD/JPY highest since July 2016

The US dollar caught a fresh bid-wave against its Japanese counterpart, as the European traders hit their desks and prefer to hold the US currency, in wake of Fed’s rate hike expectations by the year-end.

Moreover, ongoing strength behind the treasury yields also collaborates to the bullish run in the USD/JPY pair. The major is last seen exchanging hands at fresh three-month highs of 105.37, up 0.07% on the day.

Following the release of poor US durable goods data yesterday, attention now turns towards the US GDP report due later in the American session, for fresh insights on the US interest rates policy. While the yen markets appear to have ignored upbeat Japanese CPI figures as the major remains driven by the Fed hike prospects.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 105.67 (daily R1). A break above the last, the major could test 105.89 (Jul 26 high) and 106.54 (Jul 27 high) beyond the last. While to the downside, the immediate support is seen at 104.70 (5-DMA) next at 104.25 (10-DMA) and below that at 103.98 (20-DMA).