USD/JPY Forecast: Approaching 110.00 on a better market’s mood

Valeria Bednarik FXStreet

USD/JPY Current price: 109.75

The Japanese Leading Economic Index is foreseen at 102.7 in June.
US Treasury yields advance to their highest for the week.
USD/JPY has room to extend its advance, mainly once above 109.85.

The USD/JPY pair trades near a daily high of 109.78, up for a second consecutive day. The better tone of equities, with Wall Street in the green and higher government bond yields, were behind the pair’s advance. The yield on the 10-year US Treasury note is currently at 1.21%, its highest for the week.

Early on Friday, Japan will publish the preliminary estimate of the June Leading Economic Index, foreseen at 102.7, and the Coincident Index for the same month. The country will also unveil Overall Household Spending and Labor Cash Earnings.

USD/JPY short-term technical outlook

The USD/JPY pair needs to extend gains beyond 109.85, the immediate resistance level, to extend its advance. The 4-hour chart shows that it has held above a directionless 20 SMA while hovering a few pips below a mildly bearish 100 SMA. The Momentum indicator heads firmly north within positive levels, while the RSI indicator grinds higher at around 59.

Support levels: 109.45 109.05 108.70

Resistance levels: 109.85 110.20 110.50

View Live Chart for the USD/JPY

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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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