USD/JPY clinches highs near 118.60 post-ISM

The buying interest around the greenback has gathered extra traction on Tuesday, pushing USD/JPY to post fresh tops near 118.60.

USD/JPY stronger on ISM results

The pair saw its upside accelerated after US ISM Manufacturing has come in above expectations for the month of December, printing 54.7 vs. 53.56 expected and November’s 53.2.

Further data also saw US Construction Spending expanding at an annualized 0.9% vs. 0.5% initially forecasted and Markit’s Manufacturing PMI beating consensus at 54.3.

Spot leapt top the vicinity of 118.60 in the wake of the upbeat results from the US docket, challenging multi-month tops near 118.70 seen in mid-December.

Collaborating with JPY weakness, speculative net shorts have increased to the highest level since mid-August 2015 during the week ended on December 27 and according to the latest CFTC report.

USD/JPY levels to consider

As of writing the pair is advancing 0.93% at 118.60 facing the next resistance at 118.67 (high Dec.15) ahead of 121.70 (2016 high Jan.21). On the other hand, a breach of 116.77 (20-day sma) would aim for 116.02 (low Dec.30) and then 114.71 (low Dec.14).