USD/JPY climbs further to 104.40

Rising risk-on sentiment is now giving extra legs to USD/JPY, lifting it to session highs well above the 104.00 handle.

USD/JPY in 3-week tops

Spot has eroded last week’s gains in he last couple of sessions, advancing more than four big-figures since Friday’s lows around the psychological support at 100.00, all backed by an abrupt pick up of the risk appetite trends in combination with further stimulus by the Japanese government.

Next on tap for the pair will be the speeches by FOMC’s Tarullo and Bullard, while Kashkari is due to speak early in the Asian session. In Japan, and apart from the market’s response to the stimulus package, Industrial Production is expected to have contracted 2.2% MoM in May.

USD/JPY levels to consider

As of writing the pair is advancing 1.58% at 104.41 facing the immediate hurdle at 105.27 (50% Fibo of June down move) followed by 106.55 (55-day sma) and finally 106.85 (high Jun.24). On the flip side, a break below 100.02 (low Jul.8) would aim for 99.08 (2016 low Jun.24) and then 96.55 (monthly low Oct. 8 2013).