USD/JPY jumps to near 1-month highs, now eyeing 111.00 mark
|The USD/JPY pair extended its bullish trajectory for the fourth consecutive session and jumped to nearly one-month highs during early Asian session on Thursday.
Overnight news that the US tax reform guidance would be announced by September 25 reignited optimism over the US President Donald Trump's pro-growth economic agenda and provided an additional boost to the US Dollar's strong recovery move.
Meanwhile, fading safe-haven demand, on easing geopolitical concerns despite North Korea’s rejection of the new sanctions imposed by the UN Security Council, remained supportive of the pair's strong upsurge of nearly 350-pips from 10-month low level of 107.30 touched last Friday.
Meanwhile, the market seem to have largely ignored Wednesday's PPI report, which undershot expectations ahead of the key consumer inflation data due for release later during the NA session on Thursday.
• US CPI data preview - Nomura
Technical levels to watch
A follow through buying interest beyond 110.75 level could assist the pair to aim towards reclaiming the 111.00 handle, above which the recovery is likely to get extended towards the next major hurdle near the 111.75-80 region.
On the flip side, any profit taking slide below 110.40 level now seems to find support near 110.25 level, which if broken could accelerate the fall even below the key 110.00 psychological mark towards its next support near 109.70-60 horizontal zone.
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