USD/JPY seeks to retest Friday's high above 102.50

FXStreet (Bali) - USD/JPY is trading higher ahead of the Tokyo open (one of the few financial centers open today), currently testing 102.50, just marginally below Friday's peak.

Last Friday, and on the back of a key technical breakout at 102.00, the USD/JPY was underpinned by upbeat US jobless claims and Philly Fed survey data, which along with rising US bond yields, renewed expectations of further easing by the BoJ and talk of greater allocation of capital on foreign asset by Japan#'s GPIF, saw USD/JPY touch a high of 102.54.

Technically, as Valeria Bednarik, Chief Analyst at FXStreet, notes: "The USD/JPY continues to trade below the 102.60 static resistance area, with a mild positive tone according to the hourly chart that shows price above its moving averages and CCI heading north in positive territory."

"The latest recovery of the pair has been pretty much contained, with not much buyers around despite stocks strong recovery over the last few days. Above mentioned resistance the pair may extend towards 103.00 area yet further gains seem limited for now", Bedanrik adds.