USD/JPY extends gains above 103.50 as US dollar strengthens

• DXY turns positive, hits fresh highs above 90.50.
• Yen falls versus the US dollar but remains positive against the rest of G10 currencies.

The USD/JPY rebounded at 103.30 and climbed to 103.73, hitting a fresh daily low, approaching Monday’s peak. The pair remains near the high with a bullish tone supported by a stronger dollar across the board.

The greenback gained momentum during the American session despite weaker than expected US economic data and as equity prices move sideways in a small range ahead of holidays.

Investors await the outcome of current Brexit negotiations and ignore US data. Wall Street indexes hold far from the recent bottom supported by the passage of another coronavirus relief package in the US while at the same time, the spread of the coronavirus creates concerns.

The DXY is up 0.60%, trading at 90.60. The dollar is among the top performers across the globe on Tuesdays, even as US yields fall modestly. Despite the decline against the US Dollar, the yen is up versus the other G10 currencies.

Technical levels