USD/JPY Forecast: Approaching critical long-term resistance
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UNLOCK OFFERUSD/JPY Current price: 104.11
- US Treasury yields extended their advance on stimulus hopes.
- Japan will release its November Trade Balance and the December Eco Watchers Survey.
- USD/JPY is technically bullish in the near-term, needs to run past 104.50.
The USD/JPY pair hit 104.39, its highest in over three weeks, to close the day in the 104.10 price zone. The pair advanced for a fourth consecutive day, underpinned by rising US Treasury yields, as the yield of the benchmark 10-year note surged to 1.14%, its highest since March last year. Hopes that upcoming US President Joe Biden will work in a new stimulus program “in the trillions of dollars,” according to his own words, maintain safe-haven assets under pressure.
Japan didn’t publish macroeconomic data on Monday, as local markets were close due to a local holiday. The country will release its November Trade Balance and the December Eco Watchers Survey during the upcoming Asian session.
USD/JPY short-term technical outlook
The USD/JPY pair could extend its advance during the upcoming sessions, according to intraday technical readings. The 4-hour chart shows that it is well above all of its moving averages, with a sharply bullish 20 SMA about to cross above the 200 SMA. Technical indicators eased from overbought territory, but the RSI is stable at around 64, indicating limited selling interest. The pair keeps approaching a long-term descendant trend line in the 104.50 price zone, with gains above it opening doors for a steeper advance.
Support levels: 103.85 103.50 103.15
Resistance levels: 104.50 104.90 105.30
USD/JPY Current price: 104.11
- US Treasury yields extended their advance on stimulus hopes.
- Japan will release its November Trade Balance and the December Eco Watchers Survey.
- USD/JPY is technically bullish in the near-term, needs to run past 104.50.
The USD/JPY pair hit 104.39, its highest in over three weeks, to close the day in the 104.10 price zone. The pair advanced for a fourth consecutive day, underpinned by rising US Treasury yields, as the yield of the benchmark 10-year note surged to 1.14%, its highest since March last year. Hopes that upcoming US President Joe Biden will work in a new stimulus program “in the trillions of dollars,” according to his own words, maintain safe-haven assets under pressure.
Japan didn’t publish macroeconomic data on Monday, as local markets were close due to a local holiday. The country will release its November Trade Balance and the December Eco Watchers Survey during the upcoming Asian session.
USD/JPY short-term technical outlook
The USD/JPY pair could extend its advance during the upcoming sessions, according to intraday technical readings. The 4-hour chart shows that it is well above all of its moving averages, with a sharply bullish 20 SMA about to cross above the 200 SMA. Technical indicators eased from overbought territory, but the RSI is stable at around 64, indicating limited selling interest. The pair keeps approaching a long-term descendant trend line in the 104.50 price zone, with gains above it opening doors for a steeper advance.
Support levels: 103.85 103.50 103.15
Resistance levels: 104.50 104.90 105.30
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