USD/JPY Current price: 111.25
- US Treasury yields advancing underpin the USD/JPY pair.
- The pair has a strong static resistance around 112.00, with a break above it favoring a steeper recovery.
The USD/JPY pair advanced to its highest since late May, when the pair established a monthly high of 111.39, holding on to gains in the US afternoon amid the positive tone of equities and an advance in US Treasury yields. The yield on the benchmark 10-year Treasury note spent the day at around 2.87%, backed by solid US employment data, as the number of job openings held near historic highs. Japanese data released at the beginning of the day showed that Machine Tool Orders were up in June 11.4% according to preliminary estimates, below the previous 14.9% advance. The country will release its Domestic Corporate Goods Price Index for June, and May's Machinery Orders during the upcoming Asian session, while the US will offer June PPI data. The pair retains its bullish stance according to technical readings in the 4 hours chart, as technical indicators keep heading north within overbought levels, as the pair advances above its 100 and 200 SMA, which anyway remain directionless. An advance beyond 111.40 should result in further gains up to the 112.00/10 region, the next big static resistance area. Beyond this last, the upside will look more constructive and bulls may push it up to the 113.40/60 price zone during the following sessions.
Support levels: 111.00 110.60 110.25
Resistance levels: 111.40 111.80 112.10
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