USD/JPY rises to the highest level in five months above 106.20
|- Japanese yen remain among worst performer even as US stocks decline.
- USD/JPY gains for the third consecutive day.
The USD/JPY pair rose further during the American session, boosted by higher US yields and reached at 106.28, the highest level since September 10. In Wall Street, stocks indices are extending losses.
Stocks down, also JPY
The USD/JPY is trading at daily highs above 106.20, supported by higher yields. During the last hours, yields pulled back modestly, but the pair still managed to print fresh highs even as equity prices extended losses.
In Wall Street, the Dow Jones is falling 0.89%, and the Nasdaq drops by 2.01%. The deterioration in market sentiment is not boosting the Japanese yen versus the US dollar. The DXY is off lows, near 89.90, rising on the back of risk aversion. Earlier on Thursday, the index bottomed at 89.67, the lowest since January 8.
From a technical perspective, the bullish outlook in USD/JPY remains firm. The immediate resistance is located at 106.30 and above at 106.60. On the flip side, support might be seen at 105.75, followed by 105.50. A daily close under 105.25 (20-day moving average) would alleviate the positive momentum.
Technical levels
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