USD/JPY: bulls look to the 109 handle in thin trade
|- USD/JPY: bulls stay in charge, 109 handle on the cards in thin trade?
- USD/JPY: US yields rallied to 3.00% and the dollar onto the 91 handle, time for consolidation?
USD/JPY has popped higher in the Tokyo open with eyes for the 109 handle where NY traders took the pair to reach as high as 109.19. Currently, USD/JPY is trading at 108.93, up 0.10% on the day, having posted a daily high at 108.97 and low at 108.79.
Forex today: risk turns sour, dollar pressured, yields met the 3.00% mark
The pair has been lifted with traders figuring that there could be as many as four hikes from the Fed in 2018. The yield advantage is supporting the bid while geopolitical concerns have been put on the back burner in recent sessions.
However, there were some contradicting wires crossing over the Iran deal overnight while Trump was hosting Macron in Washington. In the presser, however, the presser was more positive and helped to calm down the angst. Stocks were a weight but a late correction prevented further slippage on the 108 handle. 108.54 was the session low and the pair closed at 108.81.
- Wall Street stocks down close to 2-weeks’ low as 10-year yields reach the 3.00% level
- Funda wrap: Trump on NAFTA, Iran and China, dollar hits 91 handle, 10yrs 3%
USD/JPY levels
USD/JPY bulls continue to dance the 100-D SMA finding support for the extended 25th March and 2nd April support line.
Valeria Bednarik, chief analyst at FXStreet noted that the retracement put an end to a four-day winning streak and that the 4 hours chart shows that, while the price is far above bullish moving averages, technical indicators have begun correcting extreme overbought conditions, not enough to confirm a steeper slide ahead, but surely leaning the scale to the downside.
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