USD/JPY hits fresh daily highs above 106.00

USD/JPY  erased losses and bounced to the upside, reaching levels on top of 106.00. The pair printed a fresh daily high at 106.19, level located slightly below Friday’s highs that lie at 106.30. 

The yen weakened in the market during the last hour as stocks in the US turned to the upside. The Dow Jones is now up 0.15%, after starting the day in negative. Greenback rose during the last hour versus the yen, but dropped overall in the market amid an improvement in risk appetite. 

USD/JPY testing again 106.20/30

The upside in the USD/JPY was capped last week around 106.30. That area has become a key level to watch as it offered support in the first half of June and then become a resistance area.

A break with a consolidation on top of 106.30 could open the doors for further gains with the next probable strong resistance located around 107.50/60.