USD/JPY: bullish, yields will define

Valeria Bednarik FXStreet

USD/JPY Current price: 110.63

The USD/JPY pair peaked at 111.03 immediately after the release of better-than-expected US inflation and employment data, as weekly unemployment claims fell to 284K from previous 298K, whilst inflation beat expectations in August, up by 1.9% YoY. The pair trades around pre-news levels ahead of Wall Street's opening, overall retaining its bullish tone. In the 4 hours chart, the price remains well above its 100 and 200 SMAs, with the shortest gaining upward traction below the largest. Technical indicators are horizontal within positive territory, aiming marginally higher, leaning the scale to the upside, although without confirming it. US equities and yields hold the key as a strong momentum there will likely help the pair to retest the mentioned high and even extend beyond it.

Support levels: 110.25 109.80 109.30

Resistance levels: 111.05 111.40 111.85

View Live Chart for the USD/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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