USD/JPY rebounds and hits fresh highs as USD strengthens

USD/JPY climbs above 109.60 as DXY breaks to fresh highs.
USD up across the board as gold and US stocks retreat.

Matías Salord FXStreet

The USD/JPY rebounded and climbed, breaking above previous highs above 109.60 during the US Session. The retreated of the US dollar was short-lived and now it is up across the board. The US Dollar Index that spent most of the day in negative territory is now up, above 92.40.

The rebound of USD/JPY took place despite a pullback in US equity prices and also as bond yields moved modestly off highs. The DOW JONES is up just 0.10% at 24,870 after being unable to break the 25,000 zone. Gold price dropped more than $5 during the last hour.

The USD/JPY rose from 109.40 to 109.65, to the highest since Thursday. The positive tone remains intact as the greenback accelerates across the board.

Levels to watch

To the upside, immediate resistance is seen at 106.65/70 followed by 109.80 and 110.00. On the flip side, support could be located at 109.40 (session low), 109.15 (May 11 low) and 108.85.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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