USD/JPY pushes higher, tests highs near 113.50

The greenback is extending its upside momentum vs. its Japanese peer on Wednesday, now sending USD/JPY to fresh daily highs in the mid-113.00s.

USD/JPY focus on US data

Spot has recovered the smile today backed by a more solid tone around the buck, clinching fresh weekly tops near 113.50 and opening the door for a potential visit of last week’s peaks just below 114.00 the figure.

The current rally in crude oil prices ahead of the OPEC meeting in Vienna has boosted further the risk-on sentiment, adding extra oxygen to the pair’s upside.

The softer tone in the Japanese currency remains supported by the speculative positioning. According to the latest CFTC report, speculative shorts have climbed to the highest level since early January, taking net longs to the lowest level since the same date while Open Interest has been rising for the third consecutive week, all during the week ended on November 30.

USD/JPY levels to consider

As of writing the pair is gaining 0.87% at 113.37 facing the immediate hurdle at 113.91 (high Nov.25) ahead of 114.89 (high Feb.14) and finally 116.86 (78.6% Fibo of the 2016 drop). On the other hand, a break below 111.32 (low Nov.28) would aim for 110.39 (50% Fibo of the 2016 drop) and then 109.06 (20-day sma).