USD/JPY Analysis: moves lower despite higher US yields
|USD/JPY Current Price: 105.99
The US Dollar failed to benefit from higher Treasury yields and a better market mood and finished the day modestly lower versus the Japanese Yen. The 10-year US Treasury bond yield rallied to 1.784% at one point, although it was at 1.719% by the end of the New York session. Meanwhile, Wall Street indexes rallied and trimmed weekly losses after suffering a massive selloff on Monday.
The short-term technical bias remains skewed to the downside, with indicators below their midlines in the 4-hour time frame, with significant support seen at August lows at the 105.45/50 zone. A breakdown there could send the pair quickly to 105.00 ahead of January lows at 104.00. On the other hand, immediate resistance stands around 107.10, but USD/JPY would need a break out of the 20-day SMA around 107.65 to ease the immediate selling pressure.
Support levels: 105.50 105.00 104.00
Resistance levels: 106.30 107.10 107.65
View Live Chart for the USD/JPY
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