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USD/JPY testing highs above 120

FXStreet (Mumbai) - The US dollar resumed its upward trajectory versus the yen, pushing USD/JPY near fresh session highs, as traders preferred to hold the reserve currency ahead of a set of macro data releases from the US later in the session.

USD/JPY bounces-off 20-DMA support

Currently, the USD/JPY pair trades higher by 0.11% at 120.06, attempting to retest fresh highs at 120.09 levels. The USD/JPY extended gains for the fourth straight session as traders continue to cheer the recent better than expected US housing data as they gear up for fresh batch of data releases later in the US trading.

The latest upbeat US data raised hopes of a stronger US economic recovery holding ground, fuelling sooner rate-hike bets which pushed the treasury yields higher across the curve.

The pair remains supported despite a broadly weaker US dollar. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies erased gains and trades muted at 98.21.

Looking ahead, we have weekly figures for initial jobless claims and an update on new home sales for today. Durable goods orders will attract traders on Friday.

USD/JPY Technical Levels

To the upside, the next resistance is located at 120.19 (April 14 High) levels and above which it could extend gains 120.45 (April 7 High) levels. To the downside immediate support might be located at 119.62 (April 8 Low) below that at 119.54 (5-DMA) levels.

AUD/USD remains a buy-on-dips opportunity for the week ahead – Westpac

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LME Inventory Update

The warehouse stocks data released daily by the London Metal Exchange (LME) showed a drop in the inventory levels of most base metals viz., Copper, Zinc, Lead and Aluminium. While Nickel inventories witnessed a built-up.
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