USD/JPY hist fresh highs as USD recovers after Comey’s statement

USD/JPY bounces from 6-week lows and reached a fresh daily high at 109.87 after the release of the statement of James Comey, former FBI director. The greenback gained momentum with the release, particularly against the Japanese yen that weakened as equity prices in Wall Street turned to the upside. According to Comey, Trump said: “I need loyalty, I expect loyalty”. 

Former FBI Director Comey's prepared testimony: Trump said "I need and expect loyalty"

The pair was trading at 109.85, up almost 50 pips from yesterday’s closing, holding near the highs with the US dollar trimming losses. The US Dollar Index is back into positive territory at 96.65, slightly higher for the day after posting yesterday the lowest close since November. 

Bouncing from near 109.00 

Earlier today USD/JPY bottomed at 109.09, the lowest level since April 23. The pair found support above 109.00 and now is recovering. Yesterday it broke a key level located at 110.25. The negative momentum could be reduced significantly if the greenback rises back above that area.  

On the downside, immediate support levels might be located 109.65 (European session high), 109.30 and 109.10 (daily low).