FXStreet (Edinburgh) - The US dollar is extending its positive momentum on Wednesday, now lifting the USD/JPY to fresh tops below 102.30.

USD/JPY in 6-week highs

Spot is extending its strong bounce off the boundaries of 101.00 the figure in mid-July, managing to return above the 102.00 handle against a generalized tone favouring the greenback. Absent data in the Japanese economy, the main event in the second half of the week will be today’s FOMC meeting ahead of Non farm Payrolls due on Friday. “We expect few changes at the FOMC meeting, with the statement potentially containing modestly more upbeat language on the economic recovery, but the Fed unlikely to make wholesale changes to the statement in the absence of a post-meeting press conference”, commented Annette Beacher, FX and Rates Strategy at TD Securities.

USD/JPY levels to watch

As of writing the pair is up 0.13% at 102.25 facing the next resistance at 102.27 (high Jul.3) ahead of 102.38 (high Jun.18) and finally 102.60 (high Jun.10). On the downside, a break below 101.75 (low Jul.28) would aim for 101.70 (low Jul.25) and then 101.67 (Kijun Sen).

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