USD/JPY wants more, in highs near 110.60

The Japanese currency is now accelerating its depreciation vs. its American peer, lifting USD/JPY well above the 110.00 handle.

USD/JPY higher on BoJ rumours

Spot gained further upside pressure in response to rumours that the Bank of Japan could be discussing negative loan rates in light of next week’s key monetary policy meeting.

As a matter of fact, next BoJ meeting has been growing in importance in light of the recent appreciation of the safe haven JPY and the potential reaction of the central bank. JPY has managed to advance to the 107.60 area earlier in the month, levels last seen in October 2014.

USD/JPY levels to watch

As of writing the pair is advancing 1.03% at 110.59 and a break above 112.08 (55-day sma) would aim for 113.81 (high Mar.29) and finally 114.58 (high Mar.2). On the other hand, the next support aligns at 107.65 (2016 low Apr.12) followed by 105.18 (monthly low Oct.2014) and then 100.74 (monthly low Feb.4 2014).