USD/JPY has room to extend its advance to the September 2020 high at 106.54

Persistent demand for the greenback sent the USD/JPY pair to a fresh 2021 high of 106.22, now trading around the 106.00 mark. The USD/JPY pair is bullish in the near-term and is set to test the September 2020 high of 106.54, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The US will publish today January Retail Sales, foreseen up 1% after falling 0.7% in December. The core reading is expected at 0.9%, recovering from -1.9%. The country will also release January Industrial Production and Capacity Utilization, while the Federal Reserve will unveil its latest meeting minutes.”

“The USD/JPY pair has room to retest the 106.54 September high on a break above 106.22.”