USD/JPY jumps back into the bids as Tokyo returns

By FXStreet FXStreet (Mumbai) – The US dollar appears to regain lost footing and flipped to gains versus the yen as Japanese traders returned to markets after a long break, digesting the recent developments across the financial markets.

USD/JPY rises from 120.20

Currently, the USD/JPY pair trades marginally higher at 120.34, spiking to fresh session highs at 120.40 as Tokyo re-opened. The major witnessed a fresh bout of buying interest and broke through the overnight range-trades as Japanese traders reacted to the recent chatter of Fed rate hike back on the table this year, thus bidding up the USD/JPY pair.

However, the gains are likely to remain capped as markets turn cautious amid mixed performance of the Asian indices following a negative close on the Wall Street overnight. The Japanese benchmark, the Nikkei had a negative start and now trades -1.45% lower, while Australia’s S&P ASX gains nearly 1% so far.

Looking ahead, the Japanese flash manufacturing PMI is due to be reported later this session, while markets shift their attention towards key US durable goods orders data due later tonight and Friday’s inflation figures from Japan for fresh incentives.

USD/JPY Technical levels to consider

To the upside, the next resistance is located 120.64 …read more

Source:: FX Street