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USD/JPY reaches fresh 1-month high

FXStreet (Córdoba) - The USD/JPY edged slightly higher and made a marginal new high for the day after the latest string of positive US data.

US factory orders rose 0.7% in April, surpassing forecast of 0.5%, while the ISM New York index rose to 55.3 in May from 50.6 and the IBD/TIPP economic optimism index rose to 47.7 in June. The USD/JPY reacted timidly and printed a new 1-month high of 102.50 in recent dealings. At time of writing, the pair is trading at 102.45, recording a 0.08% gain on the day.

USD/JPY technical outlook

“100 and 200 SMAs are now together and grinding higher around 101.90, offering support in case of retracements, while the 4 hours chart shows momentum still heading higher despite in overbought territory, supporting the ongoing upward trend”, said Valeria Bednarik, chief analyst at FXStreet.

In terms of technical levels, Bednarik locates next resistances at 102.70, 103.05 and 103.40, while she sees supports at 102.30, 101.90 and 101.50.

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