USD/JPY climbs further beyond 102.00

The selling pressure around the Japanese yen is now accelerating, lifting USD/JPY to fresh highs above the 102.00 mark.

USD/JPY higher on JPY stimulus

The safe haven JPY has lost upside traction at the beginning of the week in response to Abe’s confirmation that further stimulus would be in the pipeline and likely to be announced tomorrow.

In order to lift the economy, some of these measures would include the issuance of construction bonds and labour reforms.

In the meantime, the greenback continue its march north of the 96.00 handle when tracked by the US Dollar Index, bolstered by the stellar prints from June’s Payrolls.

Furthermore, speculative long positions in JPY climbed to the highest level since May 3, according to the latest CFTC report.

USD/JPY levels to consider

As of writing the pair is advancing 1.55% at 102.13 facing the immediate hurdle at 102.44 (20-day sma) followed by 103.81 (38.2% Fibo of June down move) and finally 106.85 (high Jun.24). On the flip side, a break below 100.02 (low Jul.8) would aim for 99.08 (2016 low Jun.24) and then 96.55 (monthly low Oct. 8 2013).