USD/JPY extends gains above 113.50 amid stronger US dollar
|- USD/JPY rises further during US session amid risk appetite and a stronger US dollar.
- Greenback heads for the highest close in almost two weeks versus the yen.
The USD/JPY pair rose further during the US session and climbed to 113.64, the highest level since November 15. Near the end of the day, is hovering around 113.60, up 70 pips for the day, the best performance in more than a month.
The greenback was already rising versus the yen and gained more strength in Wall Street as it erased losses versus European currencies. The DXY erased losses and hit levels on top of 97.00, a 1-week high.
The yen remains weak in the market late on Monday and is among the worst performer on the back of risk appetite and higher US yields. The 10-year rose back above 3.05% while the Dow Jones is up 1.30% and the Nasdaq 1.70%. “Financial markets seemed to recover at the beginning of the week on the back of positive news on Brexit negotiations, Italy’s 2019 budget plan and a rebound in oil prices. However, investors’ focus will be mainly on Xi-Trump talks at the G-20 leaders’ meeting later this week as trade tensions continue. The release of FOMC minutes and economic indicators for the US, the EZ and China will also be in the spotlight this week”, said analyst at BBVA Research.
USD/JPY Technical levels
If the US dollar keeps rising, the immediate resistance is seen at 113.70 (Nov 15 high), followed by 114.00/05 and 114.20 (Nov 12 high). On the flip side, now support levels could be seen at 113.45, 113.15 (European session low) and 112.85/90 (Nov 19 high).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.