USD/JPY testing highs near 118.80

FXStreet (Edinburgh) - ‘Business as usual’ for the greenback now, resuming the upside and lifting USD/JPY to multi-day tops around 118.80.

USD/JPY firmer, 119.00 on sight

Spot is prolonging the rebound from weekly troughs around 117.20 posted yesterday amidst a renewed sentiment for the US dollar. Positive docket in Japan in early trade, with Industrial Production, Housing Starts and the unemployment rate bettering expectations and the key National CPI ex-Fresh Food matching estimates gave some wings to the JPY, although the momentum was short-lived. Analysts at BTMU commented, “USD/JPY has recorded it largest monthly increase since early 2009 after the BoJ accelerated monetary easing at the end of last month. Political comments regarding the negative economic impact of the weak yen may become more frequent heading into the snap election in Japan providing some support for the yen”.

USD/JPY key levels

At the moment the pair is up 0.83% at 118.70 facing the next resistance at 118.98 (2014 high Nov.20) ahead of 119.00 (psychological level) and then 119.77 (high Aug.9 2007). On the downside, a breach of 117.89 (high Nov.27) would expose 117.74 9low Nov.28) and finally 117.66 (Tenkan Sen).

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