DOLLAR SURGE PUSHES USDJPY HIGHER
The US dollar has moved to an 11-week trading high against the Japanese Yen during the European session, hitting 112.96, as the U.S dollar surges higher, boosted by optimism over the upcoming proposed tax reforms by the Trump administration.
Going forward, the USDJPY pair may also react to new economic data coming from the United States later today, as we see the release of U.S core durable goods orders and pending U.S home sales.
The USDJPY remains strongly bullish on all-time frames, with the pair now trading above all major long-term moving averages, although short-term indicators suggest the USDJPY is now becoming slightly overbought.
Key intraday support is now located at the recent swing price-lows, at 112.80 and 112.66. Below the 112.66 level, further support is found at 112.28 and 111.90.
To the upside, further resistance above the 112.96 level is located at 113.20 and 113.66.
Above the 113.66 level, the 113.80 and 114.10 levels are key weekly resistance points before the July monthly price-high, at 114.49.