USD/JPY rises back above 110.00 as DXY strengthens

• US Dollar gains momentum as Wall Street extends recovery.
• USD/JPY rises back above 110.00 and eyes Friday’s highs

The USD/JPY pair has been rising constantly during the US session. It broke above 110.00 and printed a fresh daily high at 110.17. It was holding near the highs, headed toward the highest close since last Wednesday.

US Dollar Index Futures broke above 94.25 and rose to 94.41, extending the recovery after falling on Asian hours to 93.78, the lowest since June 14. The current move higher so far is unclear if represents a correction of the move lower that started last week or the beginning of renewed USD strength.

The yen weakened against the US dollar as equity prices in Wall Street rise further. The Dow Jones was up 0.50% after posting yesterday the lowest close in 7 weeks. The improvement in sentiment offered an impulse to the USD/JPY.

USD/JPY Technical levels

To the upside, resistance levels might be located at 110.20 (Jun 22 high), 110.45 and 110.75 (Jun 21 high). On the flip side, support levels could be seen at 110.00/05 (Jun 25 high), 109.50/55 (Jun 19 low) and 109.35 (Jun 25 & 26 low).