USD/JPY: bulls in control, eyes on equities and dollar/yields
|- USD/JPY: remains in familiar territory, trades with a bullish bias.
- USD/JPY: up to test the key 107.50 as stocks slide.
The US dollar was higher overnight and stocks were lower; the Nikkei, as expected, is struggling in Tokyo following Wall Street's negative performance.
Currently, EUR/JPY is trading at 132.74, up 0.14% on the day, having posted a daily high at 132.77 and low at 132.54.
USD/JPY has continued to test the upside and hard resistance at 107.50 despite higher yields in the US 10yr treasury's that climbed from 2.86% to 2.93%, moving in on the multi-year high of 2.95% - (2yr yields ranged sideways around 2.43%).
Where next?
On a break here, however, the 108 handle is the key objective on a break of 107.50 and eyes will continue to monitor stocks and the DXY through 90.00.
Preferred Strategy: (Jim Langlands)
USDJPY: Overall the pair remains firm - Jim Langlands of FX Charts
Jim Langlands of FX Charts explained that the daily momentum indicators retain a mildly constructive bias:
" the weeklies are also turning higher so sentiment does look to be improving for US$Jpy although the short term charts look neutral, so a fairly neutral stance is again required, but technically, buying dips still seems to be the plan."
USD/JPY levels
Valeria Bednarik, chief analyst at FXStreet explained that the pair is holding above a daily ascendant trend line coming from April's low at 106.65 and that price also developing above bullish moving averages, however noting that the technical indicators are gaining downward traction around their mid-lines - "upside limited rather than favoring a downward move".
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.