USD/JPY jumps above 136.00, extending recovery from two-month lows
- US Dollar gains momentum across the board, DXY turns positive.
- Economic data from the US shows numbers above market consensus.
- USD/JPY with a bullish outlook in the very short-term.
The USD/JPY broke above 135.50 and jumped above 136.00 extending the recovery from multi-month lows. The US Dollar is rising across the board supported by better-than-expected economic data and higher Treasury bond yields.
Dollar strengthens further after US data
US economic data surpassed expectations on Monday, helping the US Dollar. The S&P Global Composite PMI was revised from the 46.3 preliminary reading to 46.4 in November. Factory Orders in October rose 1% surpassing expectations of a 0.7% increase. The ISM Service PMI in November rose from 54.4 to 56.5. The Price Paid Index fell from 70.7 to 70.
The US Dollar Index (DXY) is up 0.40% after hitting earlier on Monday at 104.11, the lowest level since June. The more positive tone around the Greenback helped the USD/JPY move further to the upside.
The pair broke above 135.50 and climbed to 136.40, reaching the highest level since Thursday. It remains near the high, with the bullish momentum intact. The next resistance area is seen around 136.60 followed by 137.00.
The 136.00 level has become the immediate support followed by 135.50/55. The recovery of the Dollar is being supported by indicators in the 4-hour chart with the RSI moving north, breaking the 30 level and Momentum turning also to the upside. According to indicators, more gains seem likely before a new leg lower.