USD/JPY jumps to weekly highs above 105.60 as the US dollar strengthens
|- DXY hits fresh two month highs even as US yields decline.
- USD/JPY about to end the week on a positive note, rebounding sharply from six-month lows.
The USD/JPY pair broke above 105.50/55 and jumped to 105.69, reaching the highest level since September 15. The pair is rising for the fifth trading day in a row and is trading at 105.65, slightly above the 20-day moving average.
A rally of the US dollar across the board boosted the USD/JPY. There was no catalyst fueling the rally. The US Dollar Index rose above 94.70, to the highest since July. At the same time, the US 10-year yield fell to 0.65%. In Wall Street, the Dow Jones is losing 0.18%, and the Nasdaq gains 0.38%.
A strong week for USD/JPY
On Monday, the dollar dropped to 103.99, the lowest intraday level since March. Since then, it gained more than 250 pips, making a strong recovery but not enough to erase last week losses.
The short-term trend still points to the downside. The bounce alleviated the pressure. On the upside, the dollar needs to rise clearly above 106.60 (20-week moving average) to change the bias.
On the downside, the area around 104.00/30 in USD/JPY has become a key support that capped the downside several times since March. A break lower would clear the way to a bearish acceleration.
Technical 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.