USD/JPY Current price: 110.27
- The yield on the US 10-year Treasury yield jumped to 1.30%.
- The Japanese Trade Balance posted a surplus of ¥383.2 billion, missing expectations.
- USD/JPY has room to extend its advance once above the 110.45 resistance.
The USD/JPY pair advanced to 110.38, its highest for the week, underpinned by soaring government bond yields and equities, which posted substantial gains in the European and American sessions. Meanwhile, the yield on the 10-year US Treasury note topped 1.30% after plummeting to 1.124% on Monday, a multi-month low.
On the data front, Japan published the June Merchandise Trade Balance Total, which posted a surplus of ¥383.2 billion, missing expectations. However, exports were up 48.6% while imports increased by 32.7%. much better than anticipated. The country won’t publish macroeconomic data on Thursday, as local markets will be closed amid the celebration on Marine Day.
USD/JPY short-term technical outlook
The USD/JPY pair is technically bullish but holding below a critical resistance area. The 4-hour chart shows that the pair met buyers around a directionless 20 SMA but was unable to extend gains beyond the 100 SMA, which is also flat. The Momentum indicator heads firmly higher near overbought readings, while the RSI consolidates gains around 61. The pair would need to break above 110.45 to sustain the bullish potential and recover towards the 111.00 region.
Support levels: 109.80 109.40 109.05
Resistance levels: 110.45 110.90 111.25
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.