USD/JPY rebounds from eight week lows, rises to 132.00
|- USD/JPY finds support before 130.00 and breaks a negative streak.
- US dollar gains momentum as US yields rebound.
The USD/JPY rose more than a hundred pips during the last hours, recovering sharply from the lowest level in almost two months. The pair bottomed at 130.36 and recently printed a fresh daily high slightly above 132.00.
The dollar is rising across the board for the first time after falling for four consecutive days boosted by higher US yields. The 10-year rose from month lows at 2.54% to 2.67%, and the 30-year from 2.87% to 2.95%.
Equity prices are falling on Wall Street but off lows. The S&P 500 trimmed losses and is down by just 0.06%, the Dow Jones drops 0.47% and the Nasdaq is up by 0.21%.
The improvement in risk sentiment added pressure on the yen. The Japanese currency is the worst performer of the American session while the DXY is holding onto gain, rising for the first time out of the last five days.
Yen’s rally: is it over?
The reversal in USD/JPY on Tuesday could point to the end of the rally of the yen. Still, with many critical reports ahead, including July payroll on Friday, it appears too early to consider the pair is ready to resume the upside.
From a technical perspective, USD/JPY rose back above the 131.00 area (a critical support) and also rebounded at the 20-week Simple Moving average.
Technical levels
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