USD/JPY climbs to fresh daily highs above 105.60 despite broad USD weakness

USD/JPY is trading in the positive territory on Thursday.
Wall Street's main indexes look to open sharply higher.
Greenback struggles to find demand after US data releases.

Eren Sengezer FXStreet

The USD/JPY pair edged modestly higher in the early American session and rose to a fresh daily high of 105.63. As of writing, the pair was up 0.15% on the day at 105.61.

Risk flows hurt JPY on Thursday

Despite the broad-based USD weakness, the risk-on market environment seems to be weighing on the safe-haven JPY and helping USD/JPY gain traction. At the moment, the S&P 500 futures are up 0.85% on the day, suggesting that Wall Street's main indexes could open the day decisively higher on Thursday. A rally in US stocks in the second half of the day is likely to allow USD/JPY to preserve its bullish momentum.

On the other hand, the US Dollar Index is staying in the negative territory near 93.70, limiting the pair's potential upside for the time being.

The data published by the US Bureau of Economic Analysis showed on Thursday that the Core Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred gauge of inflation, rose to 1.6% on a yearly basis in August.

Other data from the US revealed that Personal Income fell 2.7% in August and the weekly Initial Jobless Claims declined by 36,000 to 837,000 in the week ending September 26th.

Later in the session, the IHS Markit and the ISM will release the Manufacturing PMI data for September.

Technical levels to watch for

USD/JPY

Overview
Today last price	105.58
Today Daily Change	0.12
Today Daily Change %	0.11
Today daily open	105.46

Trends
Daily SMA20	105.56
Daily SMA50	105.79
Daily SMA100	106.63
Daily SMA200	107.58

Levels
Previous Daily High	105.8
Previous Daily Low	105.4
Previous Weekly High	105.7
Previous Weekly Low	104
Previous Monthly High	106.55
Previous Monthly Low	104
Daily Fibonacci 38.2%	105.56
Daily Fibonacci 61.8%	105.65
Daily Pivot Point S1	105.31
Daily Pivot Point S2	105.16
Daily Pivot Point S3	104.91
Daily Pivot Point R1	105.71
Daily Pivot Point R2	105.96
Daily Pivot Point R3	106.11

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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