USD/JPY poised to extend gains beyond 109.80 amid renewed USD strength

USD/JPY kicks off the new trading week with gains on Monday.
Stronger US dollar contributes to the upside momentum in the pair.
Yen remains a non-performer amid mixed economic outlook.

Rekha Chauhan Independent Analyst

The USD/JPY pair extends the previous session’s gains in the initial Asian trading hours.
The pair is consolidating in the broader range of 109.20-109.80 since the previous two weeks.

At the time of writing, USD/JPY is trading at 109.72, up 0.06% for the day.

The US Dollar Index (DXY), which measures the performance of the greenback against its six major currencies touched the one week high of 91.60 on Friday. The US 10-year Benchmark yields retreated to a fresh 3-month low of 1.42% before recouping the 1.45%.

Investors shrug off the inflationary pressure and cheered up on the signs of solid economic growth in the world’s largest economy. In the latest economic data, the University of Michigan’s Consumer Sentiment rose 86.4% in June, much above the market expectations at 84.

The US posted a fiscal deficit of 132b in May as compared to $399b in May 2020.

On the other hand, the Japanese yen lacks behind the investor’s spotlight on the mixed economic state amid signs of poor economic recovery from the policymakers.

Market participants are now bracing up for the Fed monetary policy meeting this week for guidance on rate hike.

In the economic docket, traders will have the opportunity to trace the Japanese Industrial Production data.

USD/JPY additional levels

USD/JPY

Overview
Today last price	109.73
Today Daily Change	0.07
Today Daily Change %	0.06
Today daily open	109.66

Trends
Daily SMA20	109.35
Daily SMA50	109.12
Daily SMA100	108.06
Daily SMA200	106.28

Levels
Previous Daily High	109.84
Previous Daily Low	109.32
Previous Weekly High	109.84
Previous Weekly Low	109.19
Previous Monthly High	110.2
Previous Monthly Low	108.34
Daily Fibonacci 38.2%	109.64
Daily Fibonacci 61.8%	109.52
Daily Pivot Point S1	109.37
Daily Pivot Point S2	109.09
Daily Pivot Point S3	108.85
Daily Pivot Point R1	109.9
Daily Pivot Point R2	110.13
Daily Pivot Point R3	110.42

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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