USD/JPY: bullish, US data and Wall Street key
|USD/JPY Current price: 113.29
- USD/JPY trades at its highest since July
- Rally lead by rising equities and T-yields
After hitting its highest since July at 113.46, the USD/JPY pair entered a consolidative phase near its daily high, holding on to gains as US-Treasury yields advance. The yield for the 10-year note stands at 2.374% after closing Thursday at 2.34%, whilst Wall Street is poised to open higher after setting fresh record highs. There were no macroeconomic releases in Japan, while the US will publish existing home sales data for September after the opening, which may be an interesting barometer for the ongoing dollar's strength, as housing data has tende to disappoint lately. An upside surprise is what the greenback needs today to close the week with a positive tone.
Technically, the 4 hours chart for the pair presents a neutral-to-bullish stance, with the price above its 100 SMA, and the 200 SMA slowly turning higher below the shortest, as technical indicators hold directionless well above their mid-lines. An acceleration through the daily high should lead to an advance up to the 113.90 price zone, whilst beyond this last, a strong static resistance comes at 114.40 where the pair topped in May and July. The pair would need to fall below 112.80 to turn intraday bearish, with scope then to test 112.45.
Support levels: 112.80 112.45 112.00
Resistance levels: 113.10 113.45 113.90
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