USD/JPY reaches fresh weekly highs despite dismal US data

The USD/JPY pair gathered strength at the beginning of the NA session and pushed up to its highest level since April 13 at 109.40. At the moment, the pair is trading at 109.35, up 0.45% on the day.

Although today's macro data from the United States came in below expectations, the greenback was able to gain some bullish momentum in the first hour of the American session amid higher bond yields. As of writing, the U.S. 10-year Treasury bond yield was up 1.7% at 2.237%.

The advance figure for weekly initial jobless claims in the U.S. increased to 2444,000 for the week ending April 15, missing the consensus by 2K. Other data revealed that the manufacturing activity in Philadelphia expanded at a slower pace in April. However, the report published by the Federal Reserve Bank of Philadelphia revealsed that the employment index suggests expanding employment in the manufacturing sector.

On the other hand, Wall Street is signalling towards a mixed opening to the day as investors await earnings reports. The pair could have a difficult time extendind the upward movement if the risk appetite is not supported by the equity indexes.

Technical levels to consider

The immediate hurdle for the pair is located at 109.80 (200-DMA) ahead of 110 (psychological level) and 110.80 (Mar. 27 high). To the downside, supports could be seen at 109 (pyschological level) followed by 108.10 (Apr. 17 low) and 107.75 (Nov. 15 low).