USD/JPY hits fresh 12-yr highs at 124.39, back at 124.20

FXStreet (Mumbai) - The US dollar continues its upbeat momentum and spiked to fresh twelve year highs versus the yen ahead of US open, pushing USD/JPY further beyond 124 barrier. The major accelerated gains largely on the back of fresh bid wave caught by the US dollar across the board, shaving-off previous losses as markets brace for data flow from US due out shortly.

USD/JPY rises from 124.10

Currently, the USD/JPY pair trades 0.51% higher at 124.30, easing off fresh 12-year highs reached at 124.39 in last hours. The USD/JPY pair keeps the upside bias and extends gains mainly driven by renewed demand for the greenback as traders eagerly await US macro data.

The pair maintains a bid tone as the Japanese currency remains undermined after the BoJ pushed back its timeline for reaching its inflation target to fiscal 2016. Minutes from last month’s meeting showed that some members expressed concern that consumer price inflation wouldn't reach the target in fiscal 2017.

Moreover, yen was also pressured after some institutional banks have been calling for ¥125.00 as the next big target on the USD/JPY pair.

Technically, the major has given a descending triangle bullish breakout on the weekly charts with the next targets placed around 125.10-125.60 levels.

Meanwhile, markets now turn their focus towards US weekly jobless claims and pending home sales data for further USD moves while Japanese CPI data due tomorrow will be also closely eyed.

USD/JPY Technical Levels

To the upside, the next resistance is located at 124.50 levels and above which it could extend gains 125 levels. To the downside immediate support might be located at 123.50 (Today’s Low) below that at 123 levels.