USD/JPY regains poise, challenges 10-month tops

The US dollar regains upbeat momentum and reverts towards fresh ten-month highs against its Japanese counterpart, with USD/JPY now looking to test 118 handle.

USD/JPY rebounds on fresh USD buying

The dollar-yen pair extended its recovery from a dip to 117.20 region, mainly driven by a fresh bout of buying interest seen in the US treasury yields, as the European markets open on a firmer note. The major is last seen changing hands at 117.67, up +0.54% so far.

Also, the US dollar caught fresh bid-wave broadly and tested 13-year tops at 102.59 reached in the last hour, boosting the sentiment around USD/JPY. The major will continue to track the USD price-action ahead of the BOE decision and US inflation report due on the cards later today.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 117.86 (10-month high). A break above the last, the major could test 118.04 (daily R1) and 118.50 (psychological levels) beyond the last. While to the downside, the immediate support is seen at 117 (round number) next at 116.39 (daily pivot) and below that at 116 (5-DMA).