USD/JPY gathers momentum, re-takes 109 level

The US dollar picked-up significant strength versus its Japanese counterpart post-European open, lifting USD/JPY from 108.65 region back towards 109 handle.

USD/JPY back above 5-DMA

The dollar-yen pair is seen making another attempt to conquer 109 handle as the bulls remain unperturbed by poor sentiment on the European stocks and ride higher on the back of increasing expectations of a better US CPI print due tomorrow, especially after the US retail sales figures outpaced estimates. At the moment, the USD/JPY pair trades higher at 108.90, retesting daily tops previously posted at 108.98, up +0.23% on the day.

While the upside appears to lack momentum as there no significant fundamental drivers to spur volatility and provide fresh impetus to the major. The European markets outside London and France are closed in observance of Whit Monday holiday.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 109.36/50 (May 10 & 13 High). A break above the last, the major could test 109.97/110 (50-DMA/ psychological levels). While to the downside, the immediate support is seen at 108.47 (daily low/ 20-DMA) and below that at 108.00 (round number).