USD/JPY climbs above 108.00 to fresh 5-month highs

US dollar strengthened further on Monday, sending USD/JPY to fresh 5-month highs, underpinned by prospects of fiscal stimulus and faster pace of Fed hikes.

Following a limited downward correction seen last Friday, USD/JPY picked up fresh momentum and climbed nearly 150 pips to its highest level since early June at 108.15. The pair has steadied over the last couple of hours and it was last around 107.85, recording a 1.13% gain on Monday.

There is no first data scheduled for the New York session, with focus on Fed's members Lacker, Kaplan, and Williams speeches.  

USD/JPY technical levels

In terms of technical levels, next resistances could be found 108.15 (Nov 14 high), 109.12 (Jun 3 high) and 109.57 (Jun 2 high). On the flip side, supports are seen at 106.50 (200-day SMA), 106.02 (Nov 11 low) and 104.95 (Nov 10 low).