USD/JPY trades above 113.50 as DXY surpasses 97

• US Dollar Index advances above 97 in the early NA session.
• Wall Street starts the day in a calm manner.
• Markets stay focused on G20 headlines.

The USD/JPY spent the majority of the day in a tight range below the 113.50 mark before gaining traction in the last hour on the back of broad-based USD strength. As of writing, the pair was trading at 113.55, adding 0.05% on a daily basis.

The selling pressure witnessed on the European currencies help the US dollar find demand on Friday. Despite a lack of fundamental drivers to boost the dollar, the US Dollar Index rose above the 97 mark and turned positive on the week. At the moment, the index is up 0.3% on the day at 97.08.

Meanwhile, major equity indexes in the United States started the day mostly flat to suggest that investors remain on the sidelines ahead of the critical meeting between US President Trump and his Chinese counterpart Xi at the G20 summit this weekend.  Although there won’t be any significant macroeconomic data releases in the remainder of the day, the volatility could pick up amid month-end flows.

Technical levels to consider

The immediate resistance for the pair aligns at 113.60 (Nov. 29 high) ahead of 114 (Nov. 28 high) and 114.50 (Oct. 4 high). On the downside, supports are located at 113.30 (daily low/20-DMA), 112.90 (50-DMA) and 112.30 (100-DMA).