USD/JPY hits fresh YTD tops, now eyeing a move towards reclaiming 112.00 handle

Haresh Menghani FXStreet

• The USD remains supported by the overnight stronger US economic data.
• Fading safe-haven demand weighs on the JPY and remained supportive.
• Technical buying above 100-day SMA further fuels the positive momentum.

The USD/JPY pair climbed to fresh YTD tops on Friday, with bulls now eyeing a move towards reclaiming the 112.00 handle for the first time since Dec. 20.

The pair built on this week's goodish up-move from the 110.35 region, with a combination of supporting factors fueling the ongoing positive momentum and driving the pair higher for the third consecutive session.

The US Dollar remained supported by the overnight upbeat economic data, showing that the economy registered a stronger growth in the fourth quarter of 2018 and a mildly positive tone around the US Treasury bond yields.

This coupled with the prevalent risk-on mood, supported by positive Chinese manufacturing data, further dented the Japanese Yen's relative safe-haven status and kept pushing the pair higher through the Asian session on Friday.

Meanwhile, possibilities of some short-term trading stops being triggered on a sustained move beyond 100-day SMA might have further collaborated towards accelerating the up-move on the last trading day of the week.

Hence, an extension of the bullish move, led by some follow-through technical buying, now looks a distinct possibility ahead of today's US economic docket, highlighting the release of ISM manufacturing PMI.

Technical levels to watch

USD/JPY

Overview:
    Today Last Price: 111.79
    Today Daily change: 32 pips
    Today Daily change %: 0.29%
    Today Daily Open: 111.47
Trends:
    Daily SMA20: 110.46
    Daily SMA50: 109.8
    Daily SMA100: 111.38
    Daily SMA200: 111.32
Levels:
    Previous Daily High: 111.5
    Previous Daily Low: 110.66
    Previous Weekly High: 110.96
    Previous Weekly Low: 110.42
    Previous Monthly High: 111.5
    Previous Monthly Low: 108.73
    Daily Fibonacci 38.2%: 111.17
    Daily Fibonacci 61.8%: 110.98
    Daily Pivot Point S1: 110.92
    Daily Pivot Point S2: 110.37
    Daily Pivot Point S3: 110.08
    Daily Pivot Point R1: 111.76
    Daily Pivot Point R2: 112.05
    Daily Pivot Point R3: 112.6

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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