USD/JPY sticks to gain near multi-day tops, around 108.70 region

The USD remains supported by Friday’s mostly upbeat US retail sales data.
Bulls further took cues from a follow-through uptick in the US bond yields.
The US economic docket eyed to grab some short-term trading opportunities.

Haresh Menghani FXStreet

The USD/JPY pair held on to its positive tone through the mid-European session and is currently placed at multi-day tops, around the 108.70 region.

A combination of supporting factors helped the pair to continue gaining some traction for the second consecutive session on Monday and build on the previous session's goodish rebound from one-week lows.

The US Dollar remained supported by Friday's mostly upbeat US retail sales data and climbed to a near two-week high on Monday, which was seen as one of the key factors providing a minor boost to the major.

Meanwhile, strong economic data forced investors to reassess chances for an immediate Fed policy easing and prompted some USD short-covering move ahead of this week's FOMC monetary policy meeting.

Bullish traders further took cues from a follow-through uptick in the US Treasury bond yields, albeit the prevailing cautious mood underpinned the Japanese Yen's safe-haven status and seemed to cap gains.

Hence, it remains to be seen if the pair is able to capitalize on the positive momentum or runs into some fresh supply at higher levels amid fears of a further escalation in the US-China trade tensions.

Moving ahead, Monday's US economic docket - featuring the release of Empire State Manufacturing Index, will now be looked upon for some short-term trading impetus later during the early North-American session.

Technical levels to watch

USD/JPY

Overview
Today last price	108.68
Today Daily Change	0.13
Today Daily Change %	0.12
Today daily open	108.55

Trends
Daily SMA20	108.99
Daily SMA50	110.25
Daily SMA100	110.5
Daily SMA200	111.24

Levels
Previous Daily High	108.59
Previous Daily Low	108.16
Previous Weekly High	108.8
Previous Weekly Low	108.16
Previous Monthly High	111.71
Previous Monthly Low	108.23
Daily Fibonacci 38.2%	108.42
Daily Fibonacci 61.8%	108.32
Daily Pivot Point S1	108.27
Daily Pivot Point S2	108
Daily Pivot Point S3	107.84
Daily Pivot Point R1	108.71
Daily Pivot Point R2	108.87
Daily Pivot Point R3	109.14

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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