USD/JPY breaks above 122, highest levels since July 2007

FXStreet (Mumbai) - USD/JPY rallied to fresh eight year highs above 122 thresholds in the mid-Asian session after the US dollar jumped to a new twelve year top against its major peers.

Stronger USD pushes USD/JPY above 122

Currently, the USD/JPY trades higher by 0.59% at 121.88 levels, retracing from fresh eight year highs posted at 122.03 some minutes ago. USD/JPY spiked to multi year highs as the US dollar remained heavily bid across the board, taking the dollar index to fresh decade highs.
The US dollar index which measures the relative strength of the greenback against a basket of six major currencies jumped to fresh twelve year highs at 98.18 levels, recording a 0.59% gain on the day.

Moreover, the yen remains pressured against the US dollar following on from yesterday's softer GDP growth reading and comments from Bank of Japan (BOJ) officials.

In the week ahead, traders now focus on Japanese machine orders data and retail sales numbers from the US for further momentum on the pair.

USD/JPY Technical Levels

To the upside, the next resistance is located at 122.57 (Feb 2007 High) levels and above which it could extend gains 123 (July 2007) levels. To the downside immediate support might be located at 120.96 (5-DMA) levels, below that at 120.37 (10-DMA) levels.

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