USD/JPY consolidates at 6-day highs amid Japan stocks rally

The USD/JPY pair clinches gains and sits near six-day highs as the yen continues to lose ground amid an extended rally in the Japanese stocks.

USD/JPY finds support near 109.30

The dollar-yen pair is seen consolidating strong gains witnessed over the past two trading session and now awaits fresh impetus for the next leg higher. At the time of writing, USD/JPY hovers around 109.45, easing-off fresh six-day peaks reached at 109.54, still up +0.10% on the day.

The extension of the rally on the Asian indices, particularly Japan, keeps the sentiment buoyed and thus, diminishes the safe-haven bids for the yen. The Japanese Nikkei rallies +2.93%, while the Australian stocks are up almost +1.20%.

The major managed to regain footing after poor US retail sales and PPI data induced dip and now wavers at higher levels as we progress towards the US CPI and jobless claims report due later in the NY session.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 109.74/86 (daily R1/ Apr 7 High). A break above the last, the major could test 110 (round number). While to the downside, the immediate support is seen at 109.15/109 (10-DMA/ round number) and below that at 108.87/76 (1h 50-SMA/ 5-DMA).