USD/JPY keeps pushing higher, 107.00 on sight

The buying pressure around the greenback is now gathering further traction, sending USD/JPY to fresh peaks near 107.0 the figure.

USD/JPY in 4-month highs

Spot is advancing since Friday backed by an increasing buying bias around the greenback, which has been boosted further after Republican billionaire Donald Trump was elected US President on Wednesday.

The pair has gained nearly six big-figures since yesterday’s troughs in the 101.15/10 band following a generalized sentiment favouring the buck.

The upside in USD remains supported by increasing yields in the US money markets, where the 10-year benchmark has returned above the 2.0% mark, challenging multi-month tops.

Markets’ focus has now returned to the US monetary policy and particularly on the likeliness of the Federal Reserve to hike rates at the December meeting, which is expected to be the almost exclusive catalyst for the pair’s price action in the near-term.

Across the pond, US Initial Claims is due as usual along with the speech by St. Louis Fed J.Bullard (voter, centrist), ahead of the Reuters/Michigan index due on Friday.

USD/JPY levels to consider

As of writing the pair is advancing 0.94% at 106.66 and a break above 107.48 (high Jul.21) would open the door to 111.45 (high May 30) and finally 111.92 (high Apr.25). On the flip side, the initial support aligns at 104.32 (20-day sma) followed by 102.54 (low Nov.3) and then 101.15 (low Nov.9).

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