USD/JPY holds above 104.00 amid broad USD buying

Persistent favorable sentiment towards US dollar almost through the Asian session this Friday, kept the buying interest underpinned behind the USD/JPY pair.

USD/JPY supported above 5-DMA at 103.85

Despite deteriorating risk conditions, the US dollar continues to remain strongly bid against its major peers, with the USD/JPY keeping post-ECB decision upbeat momentum intact. The gains in the US dollar were largely driven by a sharp sell-off in the EUR/USD pair after the ECB turned out quite dovish yesterday.

Moreover, higher treasury yields across the curve also add to the bullish tone in the dollar-yen pair. The USD/JPY pair is seen last exchanging hands at 104.09, easing slightly off highs reached at 104.20, still up +0.14% on the day.

The upside lacks momentum as markets digest the latest comments from BOJ Governor Kuroda, which lent some support to the JPY bulls. Next of note for the major remains the Fed speaks, as the US calendar remains fairly light today.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 104.26 (daily R1). A break above the last, the major could test 104.50 (psychological levels) and 104.63 (3-month high) beyond the last. While to the downside, the immediate support is seen at 103.85 (5-DMA) next at 103.22 (20-DMA) and below that at 103.00 (key support).