USD/JPY upside capped around 118.00

FXStreet (Edinburgh) - The dollar is extending its buying mood vs. its Japanese peer on Monday, now taking USD/JPY to the 117.70/65 band.

USD/JPY focus on US data

Spot extends its recovery from overnight lows in the 116.80 area following a resurgence of the buying interest around the greenback. In addition, the dollar is deriving extra support from the so far positive performance of US Treasuries after Friday’s auspicious US Non-farm Payrolls.

Data wise in the US economy, the Fed’s Labor Market Conditions Index is due next (0.5 prev.) followed by the speech by Atlanta Fed D.Lockhart.

USD/JPY levels to consider

As of writing the pair is up 0.16% at 117.69 and a breakout of 120.77 (high Dec.30) would open the door to 120.88 (100-day sma) and finally 121.57 (200-day sma). On the other hand, the initial support lines up at 116.80 (low Jan.11) followed by 116.46 (low Aug.24) and then 115.82 (low Jan.16 2015).

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