FxWirePro: USD/JPY extends gains above 133 handle, hits fresh 20-year highs

Chart - Courtesy Trading View 

USD/JPY was trading 0.44% higher on the day at 133.14 at around 04:10 GMT, outlook remains bullish.

The pair is extending break above 133 handle and has tested new 20-year high at 133.21, before paring some gains.

After a brief pause in May month, the pair has resumed upside and is trading 3.53% higher for the month till date. 

The World Bank lowered this year's global GDP forecast to 2.9% from 4.1%. WB President Malpass warned that faster-than-expected tightening could push some countries into a debt crisis similar to the one seen in the 1980s.

On the data front, Japan's economy shrank an annualised 0.5% in the first quarter, slightly better than the initial estimate of a 1.0% contraction.

Upbeat data has little impact on the Japanese yen which remains offered amid fears of Fed-BoJ policy divergence, pushing the pair higher. 

Major Support Levels: 

S1: 131.64 (5-DMA)

S2: 129.60 (200H MA)

Major Resistance Levels: 

R1: 134

R2: 135.16 (Jan 2002 high)

Summary: USD/JPY trades with the bullish bias. Scope for further gains. Test of 135 levels.