USD/JPY Forecast: Pressuring the year’s high
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UNLOCK OFFERUSD/JPY Current price: 105.62
- The continued advance in US Treasury yields underpins demand for the dollar.
- Japan trade surplus rose sharply in December to ¥965.1 billion.
- USD/JPY is technically bullish but needs to break through the monthly high.
The greenback resumes its advance after presenting mild-weakness at the weekly opening, once again underpinned by rising US Treasury yields. The USD/JPY pair trades around 105.60, as the benchmark yield on the 10-year Treasury note hit 1.20%, a level that was last seen in March 2020. Financial markets are optimistic amid hopes for a large US stimulus package and progress in the global battle against COVID-19. Vaccine immunization remains sluggish amid production issues but progressing. Over the weekend, Israel announced it discovered a promising drug to cure severe cases.
Japan published mixed figures at the beginning of the day, as the December Trade Balance surplus resulted in ¥965.1 billion, much better than the previous ¥616.1 billion. The January Eco Watchers Survey for the current situation printed at 51.2, while the outlook came in at 39.9, this last, missing the market’s expectations. The US won’t publish macroeconomic data this Monday.
USD/JPY short-term technical outlook
The USD/JPY pair has additional room to go, according to intraday technical readings. In the 4-hour chart, the pair is trading above a firmly bullish 20 SMA, which advances beyond the larger ones. In the meantime, technical indicators maintain their bullish slopes within positive levels. The pair reached a 2021 high of 105.76, with further gains likely on a break above it.
Support levels: 105.20 104.85 104.40
Resistance levels: 105.75 106.10 106.45
USD/JPY Current price: 105.62
- The continued advance in US Treasury yields underpins demand for the dollar.
- Japan trade surplus rose sharply in December to ¥965.1 billion.
- USD/JPY is technically bullish but needs to break through the monthly high.
The greenback resumes its advance after presenting mild-weakness at the weekly opening, once again underpinned by rising US Treasury yields. The USD/JPY pair trades around 105.60, as the benchmark yield on the 10-year Treasury note hit 1.20%, a level that was last seen in March 2020. Financial markets are optimistic amid hopes for a large US stimulus package and progress in the global battle against COVID-19. Vaccine immunization remains sluggish amid production issues but progressing. Over the weekend, Israel announced it discovered a promising drug to cure severe cases.
Japan published mixed figures at the beginning of the day, as the December Trade Balance surplus resulted in ¥965.1 billion, much better than the previous ¥616.1 billion. The January Eco Watchers Survey for the current situation printed at 51.2, while the outlook came in at 39.9, this last, missing the market’s expectations. The US won’t publish macroeconomic data this Monday.
USD/JPY short-term technical outlook
The USD/JPY pair has additional room to go, according to intraday technical readings. In the 4-hour chart, the pair is trading above a firmly bullish 20 SMA, which advances beyond the larger ones. In the meantime, technical indicators maintain their bullish slopes within positive levels. The pair reached a 2021 high of 105.76, with further gains likely on a break above it.
Support levels: 105.20 104.85 104.40
Resistance levels: 105.75 106.10 106.45
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