USD/JPY off highs around 113.30

Pablo Piovano FXStreet

The greenback keeps the solid pace vs. the Japanese safe haven at the end of the week, with USD/JPY now sidelined around 113.30.

USD/JPY gains capped in the mid-113.00s

After printing fresh 3-month tops around 113.50, the pair sparked a correction to the 113.10 area, where decent support appeared so far.

Yields of the key US 10-year reference are flirting with tops in the 2.38% area, or fresh 2-week tops, and are also sustaining the bull run in spot. By the same token, the US Dollar Index is also testing 2-day highs in the 93.55/60 band, extending the breakout of the 93.00 handle on a more sustainable fashion.

USD remains supported since early Asian trading after the US Senate approved the Republicans-supported budget, boosting the optimism over the possibility that the Trump’s tax reform proposal could finally see the light by year-end.

In the US data space, September’s existing home sales are due later.

USD/JPY levels to consider

As of writing the pair is gaining 0.76% at 113.39 and a break above 113.47 (high Oct.20) would open the door to 114.39 (high May 11) and finally 114.51 (high Jul.11). On the other hand, the immediate support is located at 112.50 (10-day sma) seconded by 111.75 (200-day sma) and then 111.65 (low Oct.16).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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