USD/JPY clinches fresh 5-month tops near 108.80

The greenback is now picking up pace vs. its Japanese peer on Tuesday, lifting USD/JPY to test fresh tops in the 108.70/80 band.

USD/JPY bid on upbeat US data

Spot met extra upside pressure after US Retail Sales have surprised markets to the upside today. In fact headline sales rose at a monthly 0.8% vs. 0.6% initially forecasted, while sales excluding the Autos sector have expanded 0.8% inter-month.

Further data saw the regional manufacturing gauge tracked by the Empire State index at 1.5 for the current month, exceeding expectations. In addition, Export prices rose 0.2% MoM and Import prices gained 0.5% MoM.

The pair has quickly advanced to the vicinity of 108.70 in the wake of the results, paving the way for a potential test of the key barrier at 109.00 the figure as the dollar continues to trim earlier losses.

Adding to the recent offered bias around the safe haven JPY, speculative net longs have dropped to the lowest level since mid-June during the week ended on November 8 and according to the latest CFTC report.

USD/JPY levels to consider

As of writing the pair is advancing 0.30% at 108.73 and a break above 111.45 (high May 30) would aim for 111.92 (high Apr.25) and then 114.89 (high Feb.16). On the other hand, the immediate support lines up at 107.78 (low Nov.15) followed by 106.37 (200-day sma) and then 104.92 (20-day sma).

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