USD/JPY back above 110 as Nikkei extends higher

By FXStreet Amid improved risk sentiment, the bulls regained poise and drove the USD/JPY pair well beyond 110 handle, while focus remains on the G7 Summit as it gets underway.

USD/JPY eyes Thursday’s high

The dollar-yen pair finally broke the early Asian consolidation phase to the upside and regained ground, as the Asian stocks extended rebound amid oil-price recovery, which further fuelled risk-on trades. The Nikkei 225 index jumps +0.47% to trade around 16,725 levels.

Moreover, with the G7 Summit underway, markets prefer to hold the US currency and hence, contribute to the upside in the USD/JPY pair. At the time of writing, USD/JPY retreated slightly from 110.15 highs to now trade around 110.10 levels, still up +0.15% on the day.

Looking ahead, the major will get influenced by the broader markets sentiment amid developments from the G7 gathering. While the US session offers existing home sales data and FOMC member Tarullo’s speech.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 110.38 (3-week high). A break above the last, the major could test 110.50 (round figure). While to the downside, the immediate support is seen at 109.50/45 (psychological levels/ 1h 50-SMA) and below that at 109.14/00 (1h 200-SMA/ round number). …read more

Source:: FX Street