USD/JPY reaches 2-month tops near 112.80

The revitalized momentum around the greenback is now lifting USD/JPY to fresh multi-week tops in the vicinity of 112.80, clinching at the same time fresh 2-month peaks.

USD/JPY bid on US yields

The pair is advancing for the second consecutive session on Wednesday backed by a solid performance of yields in the US money markets.

In fact, yields of the 10-year benchmark are sharply higher as of writing, trading just below the critical 2.30% handle, or multi-day tops, amidst increasing optimism on the likely announcement of further details on Trump’s tax reform plans at some point in the European evening.

Further out from the USD-side, the US Dollar Index has broken above the key 93.00 barrier, recording at the same time fresh 5-week tops.

On the US data front, pending home sales and durable goods orders are expected later in the NA session. In addition, FOMC’s L.Brainard (permanent voter, dovish), Minneapolis Fed N.Kashkari (voter, dovish), St. Louis Fed J.Bullard (2019 voter, dovish) and Boston Fed E.Rosengren (2019 voter, centrist) are also due to speak.

USD/JPY levels to consider

As of writing the pair is gaining 0.56% at 112.88 and a breakout of 113.60 (high Jul.14) would aim for 114.51 (high Jul.11) and finally 115.51 (high Mar.10). On the flip side, the immediate down barrier lines up at 112.09 (200-day sma) seconded by 111.79 (10-day sma) and then 111.71 (61.8% Fibo of 114.51-107.33).