USD/JPY turns around, hits fresh session highs

USD/JPY took a U-turn and climbed from daily lows to fresh session highs, as the greenback strengthened across the board over the last hours.

USD/JPY jumped from a low of 109.46 to an hourly high of 109.89, although it hasn’t been able to test Asian session peaks so far. At time of writing, USD/JPY is trading at 109.88, recording a 0.14% gain on the day.

On the data front, US gross domestic product expanded at a 0.8% seasonally adjusted annual rate in the first quarter of 2016, a little bit faster than initially estimated 0.5% grow, but below the 0.9% expected. Meanwhile, U. of Michigan consumer sentiment index edged down to 94.7 in May, below the 95.4 expected and the 95.8 April’s print.

Investors attention now turns to Fed Chair Yellen who will speak this afternoon ahead of the long-weekend in US due to the Memorial Day celebration.

USD/JPY levels to watch

As for technical levels, immediate resistances could be faced at 110.00 (May 27 high/psychological level), 110.57 (May 20 high), 111.03 (Feb 24 low) and 111.87 (Apr 28 high). On the flip side, supports are seen at 109.40 (May 26 low), 109.10 (May 23 low), 108.63 (21-day SMA) and 108.45 (May 16 low).