USD/JPY Current price: 110.40
- Global economic slowdown fears plus rising equities sent USD/JPY to fresh yearly highs.
- US Treasury yields posted a modest daily advance but subdued.
The USD/JPY pair trades at fresh 2019 highs in the 110.40 price zone, underpinned by the positive tone of equities and a modest uptick in US government bond yields in the American afternoon, but mostly up due to broad dollar's strength driving the pair, amid mounting fears of slowing economic growth in other major economies, including the UK, the EU, and Australia, according to forecasts released last week. Meanwhile, the US and China are set to resume trade talks this week, while US top lawmakers are set to resume discussions to avoid another shutdown. Both factors can play against the greenback with negative outcomes, but don't seem a concern right now.
The pair reached the 110.45 price zone, a strong static resistance without retreating much after the first test of the area, a sign that bulls are in control of the pair. The 4hours chart shows that the RSI entered overbought territory, rather a result of the previous range trading than of a strong upward momentum, as the pair is measly 30 pips above its previous monthly high. Still, the pair is also above its 100 and 200 SMA which lack directional strength above a major Fibonacci support at 109.05, all of which maintains the risk skewed to the upside, with room for an extension up to the 111.40 price zone.
Support levels: 110.15 109.85 109.40
Resistance levels: 110.60 111.00 111.45
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.