USD/JPY struggles to hold above 109.00

USD/JPY advanced to a marginal new high on Tuesday as the dollar strengthened on the back of upbeat US CPI data, but found resistance at the 10-week SMA and pulled back during the American afternoon.

After several days of rangebound trading, USD/JPY managed to rise above the 109.55 resistance area and touched a 3-week high of 109.64 before the 10-week SmA capped the upside. USD/JPY retreated over the last hours, but it clings to a tiny gain of 0.09% trading around 109.10.

USD/JPY levels to watch

As for technical levels, next resistances are seen at 109.64 (May 17 high), 110.25 (50-day SMA) and 111.87(Apr 28 high) . On the other hand, supports could be found at 108.78 (21-day SMA), 108.45 (May 16 low) and 108.22 (May 12 low).