USD/JPY surges to weekly high, focus remains on Trump-Abe meeting

The USD/JPY pair was seen building on to yesterday's strong gains, led by the US President Trump's announcement on tax reforms, and has now jumped to fresh weekly high.

Currently trading around 113.75 region, the pair continues to benefit from Trump relfation trade that sparked a fresh wave of risk-on mood across global financial markets. Trump on Thursday said that an announcement concerning taxes is on tap for the coming weeks, which revived expectations of pro-growth policies and boosted the US Dollar across the board.

Investors on Friday will remain focused on Japanese Prime Minister Shinzo Abe’s meeting with the US President Donald Trump. With recent Trump's accusation of Japan as currency manipulator, news surrounding the meeting might prompt some volatile move around the major. 

Meanwhile, the preliminary release of UoM Consumer Confidence Index would be looked for some short-term trading opportunities during early NA session.

Technical levels to watch

Immediate upside resistance is pegged near 113.90-95 region above which the pair is likely to extend the up-move towards 114.30 horizontal level, en-route 114.55-60 resistance. On the flip side, weakness below 113.50 level now seems to find support at 113.30-25 area ahead of 113.00 round figure mark.