USD/JPY Price Analysis: Bounces off a dip below 50-DMA as Treasury yields recover
|- USD/JPY reverses half the previous sell-off amid a rebound in the US Treasury yields.
- The pair recaptures 110.00, as the rebound from the 50-DMA extends.
- Bulls looks to test the 21-DMA at 110.54 once again amid risk-on mood.
USD/JPY is reversing more than half of Thursday’s slide in the American session, having recaptured the 110.00 level amid an upbeat market mood.
The shift in the risk sentiment has rescued the US returns on the market, in turn, driving the USD/JPY pair as high as 110.26.
As of writing, the major is adding 0.38% on the day, trading at 110.20, having hit a daily low of 109.73.
From a near-term technical perspective, the spot has managed to recover ground above the 50-Daily Moving Average (DMA) at 109.80.
This coincides with the uptick in the 14-day Relative Strength Index (RSI) at 48.43, edging higher towards the central line.
However, with the momentum indicator still lying beneath the 50 level, a test of the 21-DMA upside barrier at 110.54 appears elusive.
USD/JPY daily chart
On the downside, a daily closing below the 50-DMA critical support could reignite the downtrend, opening floors towards the 109.50 psychological level.
The line in the sand for the USD/JPY buyers appears at 109.16, which is the ascending 100-DMA.
USD/JPY additional levels to watch
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.