USD/JPY hits 1-week highs, eyes 104.50

The US dollar gained momentum across the board while the yen remained among the worst performers in the currency market. Greenback received a boost after the release of the preliminary US Manufacturing PMI that showed a rise from 51.5 to 53.2 in October. Also, Fed’s Bullard comments saying that he would support a November rate hike supported the Greenback. 

The yen remained weak amid rising stocks on the back of earning results and merger & acquisition. Also, rising US government bond yields lowered the demand for the Japanese currency. 

USD/JPY above 104.00

The pair broke above 104.05 and jumped to the upside. Recently printed a fresh 1-week high at 104.30 and remained trading near the highs, almost 50 pips above Friday’s closing price and holding a bullish tone. 

To the upside, resistance levels could be seen at 104.45/50 (Oct 12 & 14 high) and 104.65 (Oct 13 high). On the downside, support now might lie at 104.00, 103.70 (daily low) and 103.15 (last week low).