USD/JPY surges to fresh multi-month high after comments from Fed's Bullard

The greenback continues to surge across the board, with the USD/JPY pair clearing 109.50 barrier to hit the highest level since early June.

Currently trading at fresh session peak around 109.55-60 region, the pair caught fresh buying interest amid renewed greenback buying interest, which continues to be underpinned by increasing odds of an eventual Fed rate-hike action. Moreover, comments from FOMC member James Bullard that one rate-hike was possible in Dec. reaffirmed market expectations further supported the bullish sentiment surrounding the greenback.

Meanwhile, mixed European equity markets did little to boost the Japanese Yen's safe-haven appeal and the pair jumped to a fresh multi-month high. 

Later during NA session, Industrial Production and Capacity Utilization data from the US might provide impetus for short-term traders ahead of Thursday’s key US CPI data for the month of October. 

Technical levels to watch

A follow through buying interest above 109.60 area now seems to pave way for continuation of the pair’s upward trajectory towards 110.00 psychological mark. On the downside, 109.15-10 area, closely followed by 109.00 handle, seems to protect immediate downside below which the pair is likely to witness a corrective slide towards 108.40-35 region.