USD/JPY Forecast: Lagging US Yields keep the JPY buoyed
|USD/JPY Current price: 113.01
View Live Chart for the USD/JPY
Lagging US Yields keep the JPY buoyed. Despite the strong opening of European equities, the USD/JPY pair remains subdued, having trimmed most of its modest weekly gains, and trading barely above the 113.00 figure ahead of the US opening. The main reason behind yen's strength is US Treasury bond yields, as despite Wall Street's rally to record highs, yields have barely recovered from near monthly lows. As commented on the previous update, the political-risk background is another factor underpinning safe-haven assets, such as the JPY and gold. The pair is biased lower according to the 1 hour chart, as the price is back below its moving averages, with the 100 SMA providing an immediate resistance around 113.30 and technical indicators hovering near oversold readings with no aims of turning higher. In the 4 hours chart, the price is a handful of pips below its 100 SMA whilst technical indicators have turned flat around their mid-lines, as investors enter wait-and-see mode ahead of the release of FOMC Minutes.
Support levels: 112.90 112.50 112.10
Resistance levels: 113.30 113.65 114.00
Interested in USD/JPY technicals? Check out the key levels
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.