USD/JPY: bullish momentum limited by hesitating equities

USD/JPY Current price: 110.62

  • US Treasury yields reach fresh multi-year highs, underpinning the pair.
  • US to release minor macroeconomic figures, equities more relevant for direction.

The USD/JPY pair trades at its highest since January 23rd, now retreating modestly from a fresh monthly high of 110.73. There were no macroeconomic releases coming from Japan, but fresh multi-year highs in US Treasury yields underpinned the pair, with the yield on the benchmark 10-year Treasury note reaching 3.12% now around 3.10%. The dollar retains its leadership, being the strongest currency across the board, but holding within familiar levels against most of its major rivals. The US session will bring some minor releases that include weekly unemployment claims and a regional manufacturing index, but attention will be on equities and yields. Wall Street is struggling to advance this week, and a negative tone there could dent USD/JPY gains.

Technically, the 4 hours chart shows that the pair continues advancing above firmly bullish 100 and 200 SMA, although technical indicators lack upward momentum, holding anyway near overbought readings. February's high at 110.47 is now the immediate support, followed by the 110.00 figure, where buyers should surge to keep the upside favored. To the upside, an acceleration through the daily high should lead to a continued advance up to the 111.60 region.

Support levels: 110.45 110.00 109.60

Resistance levels: 110.80 111.20 111.60

View Live Chart for the USD/JPY

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