USD/JPY re-takes 5-month tops above 109.00

USD/JPY is seen taking on the recovery above 109 handle, having witnessed a brief upside consolidation phase last hours.

USD/JPY bounces-off daily pivot

The daily pivot support continues to come to the rescue of the USD/JPY pair, triggering fresh bid wave and sending the rate back towards multi-month highs, following a test of it at 108.80 levels. The major is last seen exchanging hands at 109.10, having recovered most losses.

The major consolidates near five-month tops and awaits fresh impetus for the next push higher amid risk-on market profile, as reflected by tumbling VIX futures, with the CBOE Volatility Index down almost 8%.

However, it remains to be seen if the spot sustains its recovery mode above 109 handle as the greenback remains broadly lower, tracking the retreat in US treasury yields ahead of the US dataflow due later in the NA session.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 109.34 (multi-month high). A break above the last, the major could test 109.50 (zero figure) and 109.78 (daily R1) beyond the last. While to the downside, the immediate support is seen at 108.80 (daily pivot/ low) next at 108.06 (5-DMA) and below that at 107.74 (Nov 15 low).

To learn more about this topic, check our video analysis