FXStreet (Mumbai) - USD/JPY continued its upsurge in the European session, extending its rise from the previous session and heading towards fresh three-week highs as US dollar remains underpinned across the board on US macro data.

USD/JPY posts fresh 3-week highs

Currently, the USD/JPY traded 0.31% higher at fresh three week highs of 119.97 levels, pulling away session lows reached 119.75 levels. The US dollar remains firmly bid backed by strong fundamentals and on increased bets of a sooner US rate-hike.

Moreover, rising yields on the 10—year US treasuries which trades higher at 2.021%, gaining nearly 1% on the day, boosted the US dollar, pushing the pair further upside.

Meanwhile, more US data later this week will add further momentum to the pair, with main focus on the latest employment data.

USD/JPY Technical Levels

To the upside, the next resistance is located at 120 levels and above which it could extend gains 120.50 levels. To the downside immediate support might be located at 119.75 levels, below that at 119.26 levels.