USD/JPY pushes up to session highs despite weak US Data

The USD/JPY picked up some bullish momentum as the American traders enter the markets and edged higher through 108.50 to refresh its session high. At the moment, the pair is trading at 108.60, a couple of pips below last week's closing level.

Although the Empire State Manufacturing Index fell to 5.2 from 16.4 in April, the greenback has been able to remain resilient above the 100 psychological level. On one hand, the trading volume is still low due to Eater, and on the hand, the employment sub-index advanced to a two-year high at 13.9, limiting the selling pressure on the greenback. 

• NY Fed: Headline general business conditions index fell eleven points to 5.2

The price movement, however,  is seen as a technical consolidation of last week's heavy losses rather than a particular response to the data. NAHB Housing Market Index for April and TIC flows for February are still due later in the session.

Technical outlook

The initial support for the pair is seen 108.10 (daily low) followed by 107.60 (Nov. 15 low) and 107 (psychological level). To the upside, the pair could encounter resistances at 109 (psychological level), 109.40 (Apr. 13 high) and finally 110 (psychological level).