USD/JPY up for the day but still far from 113.00
|- Spot remains near session highs above 112.50.
- US yields not supporting the upside.
- DXY trims gains and retreats toward 93.50.
The USD/JPY peaked at 112.80 and failed to move further to the upside. During the US session pulled back, finding support above 112.50. As of writing it was at 112.62/66, up 40 pips for the days.
USD/JPY limited by yields
The pair lost momentum amid rising US bonds. The 10-year yield fell from 2.35% to 2.32%. While USD/JPY retreated was limited by a stronger greenback. The Dollar Index reached earlier 93.74, the highest since November 22 and it was at 93.60, away from the top but still up, headed toward the fourth gain in-a-row. Expectations about US tax reform and economic reports continued to support the dollar.
Today US data had little impact. Initial jobless claims fell to 236K, below the 240K expected. Attention regarding jobs numbers lies on Friday’s NFP for the month of November (+200K expected). In Japan tomorrow, key Q3 GDP figures will be released.
Levels to watch
To the upside, immediate resistance is seen at 112.80 (daily high), followed by the 113.05/10 (weekly high) and then 113.25 (Nov 13 low). On the downside, the FXStreet's technical confluence indicator shows support at 112.45, 112.10 and 111.80.
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.