USD/JPY buoyant near 119.40

By FXStreet FXStreet (Edinburgh) – The greenback is advancing vs. its Japanese peer on Monday, lifting USD/JPY to the area of 119.35/40.

USD/JPY up amidst rumours

Spot continues to recover ground lost last week, after bottoming out in the mid-118.00s following Friday’s solid readings from the US labour market during last month. The greenback has started the week on the positive footing amidst the inactivity in the US markets due to the Labor Day holiday.

In addition, rumours are hovering over the markets that slowdown in the Japanese GDP could extend further in time in response to the recent weaker-than-expected indicators. There are no comments from the BoJ yet, although market participants could start to factor in the likelihood of another round of stimulus in the domestic economy.

USD/JPY levels to consider

At the moment the pair is up 0.27% at 119.35 facing the next up barrier at 120.58 (high Sep.3) followed by 120.92 (high Sep.1) and finally 121.75 (high Aug.28). ON the flip side, a breakdown of 118.58 (low Sep.4) would open the door to 118.45 (low Aug.25) and then 116.16 (low Aug.24).
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Source:: FX Street