USD/JPY keeps highs near 109.60

By FXStreet The Japanese Yen remains on the defensive vs. the greenback today, taking USD/JPY to the 109.60 area, challenging daily highs.

USD/JPY stronger ahead of FOMC

The pair has quickly recovered from yesterday’s shallow dip and remains in the upper end of the recent range above the 109.00 handle and challenging the critical resistance area around 109.70.

JPY is losing ground despite Q1 GDP figures in Japan has surprised markets to the upside early in the Asian session, expanding 1.7% YoY and 0.4% inter-quarter. These results cast a mantle of doubts regarding the prospects of further stimulus by the BoJ, although the lack of traction in inflation figures still remain a concern amongst policymakers.

Ahead in the session, USD will take centre stage in light of the release of the FOMC minutes.

USD/JPY levels to watch

As of writing the pair is advancing 0.39% at 109.57 facing the immediate resistance at 109.65 (high May 12) followed by 110.49 (55-day sma) and finally 111.92 (high Apr.28). On the flip side, a breach of 105.52 (2016 low May 3) would open the door to 105.18 (monthly low Oct.2014) and then 101.97 (monthly low Aug.7 2014).
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Source:: FX Street