USD/JPY: lofty heights? Through the key September highs on resurgence in the greenback

Currently, USD/JPY is trading at 104.36, up 0.17% on the day, having posted a daily high at 104.39 and low at 104.14.

USD/JPY is up in the Tokyo open following a positive day on Wall Street with mergers and a general risk-on mood with US manufacturing turning up the heat as a backstop while all three of the benchmarks in the S&P, Do and NASDAQ closing in the green. The greenback in the DXY made it to fresh nine-month highs just below the 98 handle, however slightly overbought readings and a head & shoulders in the S&P continuing to take shape could spell consolidation at least.

US dollar index rises again but remains below 99.00

For the calendar, there are a number of key releases from both the US economy and Japan's this week, but we will have to hold out for that as the day ahead is empty ahead of  house price momentum data along with consumer confidence. We then have FOMC's Lockhart who speaks on community development.

USD/JPY levels

USD/JPY is probing the September high at 104.32 although analysts at Commerzbank noted the divergence of the daily RSI, and the slow stochastics that have rolled over. "Currently the market is under pressure to ease back towards the base of the cloud at 102.22."

Meanwhile, current price is 104.36, with resistance ahead at 104.39 (Daily High), 104.40 (Weekly Classic R1), 104.55 (Daily Classic R2), 104.88 (Daily Classic R3) and 105.00 (Weekly Classic R2). Next support to the downside can be found at 104.33 (Yesterday's High), 104.20 (Monthly High), 104.18 (Weekly High), 104.18 (Daily Classic R1) and 104.17 (Daily Open).