USD/JPY extends gains above 110.50, to highest in two weeks despite US Dollar weakness

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  •  Yen weak across the board amid an improvement in risk sentiment. 
  • US Dollar drops in the market, but gains versus the yen on the back of higher US yields. 

The USD/JPY broke above 110.25 earlier today and accelerated to the upside. During the American session printed a fresh daily high at 110.63, the strongest in two weeks. As of writing it trades near the top with the positive bias intact. 

The main boost today so far came from an improvement in risk sentiment and higher US yields. More recently, developments around Brexit added support to the US Dollar against the yen. UK PM May is presenting a new deal to be considered by the Parliament. 

Levels to watch 

Today’s rally pushed the price above the 110.25 barrier, adding more momentum to the bullish tone. The short-term outlook points to the upside. The pair rose above the 20-day moving average (110.45) and it could post the first close on top since late April. 

To the upside, the immediate resistance is seen at 110.65, followed by 110.95 and 111.25. On the flip side, support levels are now 110.30 (May 20 high), 109.80 (weekly low) and 109.45/50 (May 17 low). 

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