USD/JPY through 113.00 on US data, fresh peaks

The upside momentum around the greenback stays well and sound on Wednesday, now motivating USD/JPY to clinch fresh 2-month tops in the 113.00 neighbourhood.

USD/JPY focus on Fedspeak

Spot keeps the rally intact today following a positive performance from yields in the US money markets, where yields of the key 10-year reference are now treading water in the upper end of the range below the key 2.30% handle.

In the meantime, the US Dollar Index (DXY) stays on a firm note and managing well to keep business above the recently broken up barrier at the 93.00 mark, all amidst rising expectations of some announcement by the White House on the long-waited tax reform plans.

Data wise, US durable goods orders expanded above estimates at a monthly 1.7% during August, while core durable goods orders expanded 0.2% inter-month. Later in the session, August’s pending home sales are due followed by speeches by 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).

USD/JPY levels to consider

As of writing the pair is gaining 0.75% at 113.09 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).