USD/JPY stretches to fresh highs, then turns lower

USD/JPY stretched to a fresh 2-week high after the release of better-than-expected US consumer sentiment data, but quickly turned lower trimming daily gains.

USD/JPY peaked at 109.54, but failed to confirm a break above the 109.35/40 zone, that has been capping the upside all through the week. The pair the slid to the 109.05 zone, and it was last trading at 109.11, still a few pips up on the day.

University of Michigan reported US consumer sentiment improved in May, with the preliminar index printing 95.8 vs 91 expected. However, the US dollar failed to sustain the rally after data.

USD/JPY levels to watch

As for technical levels, next supports could be found at 108.50 (May 13 low), 108.22 (May 12 low) and 107.84 (10-day SMA). On the other hand, resistances are seen at 109.54 (May 13 high), 110.11 (10-week SMA) and 110.42 (50-day SMA).