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  • Chicago Fed’s National Activity Index rises in October.
  • US Dollar Index finds support below 96.70.
  • Higher risk appetite weighs on the JPY on Monday.

After spending the majority of the day in a relatively tight range near 113.20, the USD/JPY turned north in the last hour and rose to its highest level in 10 days at 113.43. As of writing, the pair was trading at 113.40, adding 0.38% on a daily basis.

With the market sentiment improving following the news of the EU27 approving the Brexit deal, major equity indexes in Europe gathered momentum and forced safe-havens to stay under pressure. At the moment, Germany’s DAX is up 1.25% while the UK’s FTSE 100 is gaining 0.75%. Boosted by the decisive recovery seen in Europe, Wall Street opened the day strongly higher to further weigh on the JPY.

On the other hand, today’s data from the U.S. showed that the Chicago Fed’s National Activity Index improved to 0.24 in October from 0.14 in September. “Fifty of the 85 individual indicators made positive contributions to the CFNAI in October, while 35 made negative contributions,” the Chicago Fed explained. The US Dollar Index, which slumped to a daily low of 96.65 earlier in the day, was last seen at 96.86, where it was losing 0.09% on a daily basis.

The next data from the U.S. will be the Dallas Fed’s Manufacturing Index. However, markets are likely to stay focused on risk perception.

Technical levels to consider

The pair could face the first resistance at 113.60 (Nov. 16 high) ahead of 114.20 (Nov. 12 high) and 115 (psychological level). On the downside, supports are located at 113.25 (20-DMA), 113 (50-DMA) and 112.25 (100-DMA).