USD/JPY advances further to 5-DMA, US data, Yellen eyed

USD/JPY’s rebound from ahead of 100 handle found extra legs in the last hour, sending the rate further northwards to test 5-DMA located at 100.65.

USD/JPY finds support near 100.40 region

The dollar-yen pair catches fresh bid tone and extends its recovery as we head into mid-Asia, with the bulls finding some support from a minor-recovery staged by the Japanese stocks, while oil prices turn positive.  At the time of writing, USD/JPY climbs +0.17% to 100.60, testing highs reached at 100.66, while the Nikkei 225 index now drops -1.44% versus -1.70% seen previously.

A renewed risk-on wave appears to have gripped markets after the Chinese consumer sentiment data jumped to fresh 3-month highs, while fresh buying interest seen in oil prices also lifted the overall markets sentiment and weighed on the safe-haven yen. Meanwhile, the USD index advances +0.13% to fresh session tops of 95.48.

Nothing much of note for the major in the European session ahead, and hence, focus shifts to the US durable goods and Fed speaks due later in the NA session. Fed Chair Yellen’s testimony on supervision and regulation before the Committee on Financial Services will remain in the spotlight.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101.03 (10-DMA). A break above the last, the major could test 101.43 (daily R2) and 101.65 (20-DMA) beyond the last. While to the downside, the immediate support is seen at 100.50 (daily pivot), next at 100.07 (five-week lows) and below that at 99.53 (mid-Aug lows).