USD/JPY advances further to 114.40, risk-on back in vogue

The Japanese yen is seen extending losses versus its American counterpart in the European session, now pushing USD/JPY back towards multi-month tops reached well beyond 114 handle.

USD/JPY trades above all major DMAs

The dollar-yen pair caught fresh bid-wave over last hours, after the JPY was solid-into a renewed risk-on wave, as the European traders moved past the Italian referendum-related news and sought higher-returns on their funds, lifting the demand for risk assets at the expense of the yen.

The major is last seen changing hands at daily highs of 114.40, making headways towards multi-month tops of 114.83, recording a gain of +0.70% on the day.

Attention now turns towards the US economic releases, including the ISM non-manufacturing PMI report, due later in the NA session. In the meantime, persisting risk trends will play a major influencing role on the spot.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 114.50 (psychological levels). A break above the last, the major could test 114.83 (10-month high)  and 115 (zero figure) beyond the last. While to the downside, the immediate support is seen at 113.33/29 (daily pivot/ 10-DMA) next at 112.88 (daily low) and below that at 112.64 (daily S2).