USD/JPY firmer, clinches highs above 113.00

The Japanese yen is sharply lower vs. its American peer on Monday, now lifting USD/JPY to fresh daily peaks beyond the 113.00 handle.

USD/JPY upside unabated

The pair’s rally is everything but abated today, advancing for the fourth consecutive week to fresh 7-week peaks and trading around the 76.4% Fibonacci retracement of the May-June decline just above 113.00.

The selling pressure around the safe haven JPY has gathered traction today after PM Abe’s LDP party lost the metropolitan elections in Tokyo, while a former BoJ official argued that Governor Kuroda is ‘out of ideas’.

The pair’s upside has also found further motivation in the positive move in US yields, with the 10-year benchmark hovering over the 2.32%, a tad lower than overnight tops.

JPY stays also under pressure from the positioning view, with speculative net shorts have climbed to the highest level sin March 21 in the week to June 27 and as per the latest CFTC report.

In the data space, the Japanese Tankan index came in on a positive note while June’s manufacturing PMI surprised estimates. In the US, the key ISM manufacturing is due later in the NA session.

USD/JPY levels to consider

As of writing the pair is gaining 0.59% at 113.07 facing the next up barrier at 114.39 (high May 11) followed by 115.51 (high Mar.10) and finally 118.61 (2017 high Jan.3). On the downside, a break below 112.26 (61.8% Fibo of the May-June drop) seconded by 111.95 (10-day sma) and then 111.60 (50% Fibo of the May-June drop).