USD/JPY Forecast: More gains above 106.22, February’s high
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UNLOCK OFFERUSD/JPY Current price: 105.88
- Soaring US Treasury yields and substantial gains in Wall Street underpinned the pair.
- Japan Leading Economic Index is expected to be confirmed at 94.9 in December.
- USD/JPY is trading near its February high and bullish in the near-term.
The USD/JPY pair advanced this Wednesday to trade as high as 106.10 to settle around the 105.90 level. US Treasury yields were the main driver for the pair, as long-term ones hit fresh one-year highs. Substantial gains in Wall Street following the US Federal Reserve´s chief second day of testimony fueled it further, spurring risk appetite.
During the upcoming Asian session, Japan will release the final reading of the December Leading Economic Index, foreseen unchanged from the preliminary estimate at 94.9. The Coincident Index for the same period is expected at 87.8.
USD/JPY short-term technical outlook
The USD/JPY pair has trimmed most of its previous week losses and trades near this year’s high at 106.22, the immediate resistance level. The near-term picture is now bullish, as it has advanced beyond all of its moving averages, with the 20 SMA turning higher above the longer ones. Technical indicators have gained ground above their midlines, with the Momentum maintaining its bullish slope and the RSI stable at around 62. Once above the mentioned daily high, the pair has room to extend its advance to 106.95, the high from August 28.
Support levels: 105.70 105.25 104.90
Resistance levels: 106.30 106.60 106.95
USD/JPY Current price: 105.88
- Soaring US Treasury yields and substantial gains in Wall Street underpinned the pair.
- Japan Leading Economic Index is expected to be confirmed at 94.9 in December.
- USD/JPY is trading near its February high and bullish in the near-term.
The USD/JPY pair advanced this Wednesday to trade as high as 106.10 to settle around the 105.90 level. US Treasury yields were the main driver for the pair, as long-term ones hit fresh one-year highs. Substantial gains in Wall Street following the US Federal Reserve´s chief second day of testimony fueled it further, spurring risk appetite.
During the upcoming Asian session, Japan will release the final reading of the December Leading Economic Index, foreseen unchanged from the preliminary estimate at 94.9. The Coincident Index for the same period is expected at 87.8.
USD/JPY short-term technical outlook
The USD/JPY pair has trimmed most of its previous week losses and trades near this year’s high at 106.22, the immediate resistance level. The near-term picture is now bullish, as it has advanced beyond all of its moving averages, with the 20 SMA turning higher above the longer ones. Technical indicators have gained ground above their midlines, with the Momentum maintaining its bullish slope and the RSI stable at around 62. Once above the mentioned daily high, the pair has room to extend its advance to 106.95, the high from August 28.
Support levels: 105.70 105.25 104.90
Resistance levels: 106.30 106.60 106.95
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