USD/JPY: Bulls on a roll, regains 109.50 and beyond

By FXStreet The bid tone around the USD/JPY pair keeps growing bigger, driving the rate to the highest levels since April-end above 109.50 levels.

USD/JPY: 50-DMA at 109.88 in focus

The Japanese currency remains heavily offered against its American counterpart in the European session, as the underlying risk tone continues to favour the higher-yielding/risky assets at the expense of the safe-havens such as the JPY. At the moment, the USD/JPY pair eases-off highs reached at 109.65 and now trades at 109.55, still up +0.50% on the day.

Moreover, expectations of a better US inflation report also keep the greenback underpinned across the board, which in turn contributes to the upside in USD/JPY. Looking ahead, the US calendar offers the much-awaited US CPI print, followed by the industrial production and housing data ahead of the Japanese GDP data due tomorrow.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 109.88/110 (50-DMA/ psychological levels). A break above the last, the major could test 110.50 (round figure). While to the downside, the immediate support is seen at 108.98 (5-DMA) and below that at 108.50/35 (20-DMA).
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Source:: FX Street