USD/JPY clings to gains above 109.00

USD/JPY has entered a consolidation phase near highs, after staging a decent rally during the previous sessions to hit its highest level in almost two weeks.

USD/JPY rose more than a hundred pips throughout the day and peaked at 109.26 before finding resistance and settling in a range just below. The pair is extending a recovery from 18-month lows scored a week ago, helped by better sentiment and rumours of possible BoJ intervention.

USD/JPY levels to watch

At time of writing, USD/JPY is trading at 109.08, recording a 0.72% daily gain. As for technical levels, next resistances are seen at 109.89 (Apr 21 high), 110.70 (50-day SMA) and 111.87 (Apr 28 high). On the flip side, supports could be found at 108.26 (May 10 low), 107.75 (10-day SMA) and 107.07 (May 9 low).