USD/JPY pushes higher to 120.70

FXStreet (Edinburgh) - The US dollar remains on a positive note vs. its G10 peers on Tuesday, with USD/JPY now hovering over session tops above 120.70.

USD/JPY attention to Japanese GDP, FOMC

The solid pace of the greenback propped up by an upbeat momentum in US yields has combined today with auspicious results from the US housing sector, adding extra legs to the USD rally. Ahead in the session, the Japanese flash GDP figures will take centre stage, followed by the FOMC minutes due tomorrow during the European evening. Market consensus expects the Japanese economy to have expanded at an annual pace of 1.5% during the first quarter.

The pair is transiting 5-week peaks in the 120.70/75 band, trading at shouting distance from April’s tops at 120.84, regarded as a critical barrier prior to 2015 highs just above the 122.00 handle.

USD/JPY levels to consider

The pair is now advancing 0.59% at 120.71 with the next hurdle at 120.84 (high Apr.13) followed by 121.00 (psychological level) and finally 121.16 (76.4% of 122.04-118.33). On the other hand, a breakdown of 119.83 (low May 19) would expose 119.51 (Kijun Sen) and then 119.27 (low May 18).