USD/JPY rebounds from fresh 2-week lows, 118 in sight

FXStreet (Mumbai) - The US dollar bounced-back sharply against the Japanese yen after falling to fresh two-week lows at 116.95 levels in early Asian opening as disappointing US growth numbers weighed on markets.

Trades at 20-DMA

Currently, the USD/JPY pair traded at 117.80 levels, up 0.26% on the day, close to fresh daily highs posted at 117.87 few minutes ago. The pair rebounded and filled in the Asian gap as traders resorted to profit booking on their short positions after the recent weakness seen in Friday last session. Moreover, the USD bulls are expected to remain supported ahead of a heavy US macro data-led week.

Meanwhile, diverging policy outlook between the US Fed and the Bank of Japan (BOJ) may continue to underpin USD/JPY.

USD/JPY Technical Levels

To the upside, the next resistance is located at 118 levels and above which it could extend gains 118.47 levels. To the downside immediate support might be located at 117.25 levels, below that at 116.95 levels.

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EUR/JPY is currently trading at 133.03 with a high of 133.19 and a low of 132.13 and up 0.28%.
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