USD/JPY pushes higher, approaches 102.50 as dollar recovers

After a brief knee-jerk at the end of the Asian trading hours, the greenback has now recovered the smile and is pushing USD/JPY to fresh highs near 102.50.

USD/JPY focus on data

The pair is trading in 3-week highs around the mid-102.00s following a renewed bid tone in the US dollar, all in response to recent hawkish Fedspeak and the upbeat tone from Yellen’s speech at Jackson Hole last Friday.

On the Japanese side, scepticism remains on the rise regarding the likeliness of extra easing by the BoJ at the September meeting, with opinions amongst investors still pretty divided.

According to the latest CFTC report, speculative net longs in JPY have climbed to 7-week high during the week ended on August 23.

USD/JPY levels to consider

As of writing the pair is gaining 0.54% at 102.35 facing the immediate hurdle at 102.88 (55-day sma) followed by 103.28 (50% Fibo of the June-July up move) and finally 105.55 (100-day sma). On the other hand, a breakdown of 101.13 (20-day sma) would aim for 99.53 (low Aug.16) and then 99.08 (low Jun.24).