USD/JPY analysis: more gains expected beyond 110.25
|USD/JPY Current price: 110.11
The USD/JPY pair kept rallying this Tuesday, up to 110.19 and steady nearby by the end of the day, as the positive momentum in equities and yields weigh on the Japanese currency. With no relevant macroeconomic releases in any of both economies, the pair traded purely in sentiment, with the market ignoring late comments from President Trump, who complained about economic sanctions not being enough for North Korea. US indexes advanced for a second consecutive day, with the S&P reaching a new all-time high and the DJIA not far below its highest. As for US yields, the 10-year note interest surge to 2.18%, after trading as low as 2.02% last Friday while the yield on the 30-year Treasury bond was up at 2.78%. Japan will release its producer price index during the upcoming Asian session, but unless a strong deviation from market's expectations, the numbers will hardly move the yen. In the meantime the 4 hours chart shows that the price remains well above its 100 and 200 SMA, which at least have lost their bearish strength, whilst technical indicators pared gains within overbought territory, which is not enough to confirm an upcoming downward correction. The pair has anyway advanced almost straight since bottoming at 107.31 last week, which means that, despite not seen yet, a downward correction is possible, particularly if the pair is unable to advance beyond 110.25, the immediate resistance.
Support levels: 109.70 109.35 109.00
Resistance levels: 110.25 110.60 111.05
View Live Chart for the USD/JPY
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.