USD/JPY extends beyond 119.50

FXStreet (Mumbai) - The US dollar finally pierced through the 119.50 –psychological barrier against the yen in the early European trades, driving USD/JPY to fresh session highs at 119.54, largely on the back of renewed strength in the greenback versus its major competitors.

USD/JPY at fresh 4-day highs

Currently, the USD/JPY pair trades 0.25% higher at 119.50 levels, hovering near fresh session highs. The USD/JPY pair extended gains as a fresh bid wave caught the greenback while traders readjusted positions and favoured the USD longs after the greenback hit key support last week.

The US dollar index which measures the relative strength of the greenback against a basket of six major currencies jumped near fresh session highs at 98.47, up 0.32% on the day.

Looking ahead, today’s economic calendar is powder dry for the major. However, the report on existing home sales is scheduled for Wednesday, while weekly figures for initial jobless claims and an update on new home sales are set for Thursday. Durable goods orders will attract traders on Friday.

USD/JPY Technical Levels

To the upside, the next resistance is located at 119.76 (April 15 High) levels and above which it could extend gains 120 levels. To the downside immediate support might be located at 119 below that at 118.76 (April 15 Low) levels.