USD/JPY Current price: 105.61
- US Treasury yields up roared in pre-opening trading, posting fresh one-year highs.
- Scarce US macroeconomic calendar shifts the focus to US stimulus-related news.
- USD/JPY is at risk of falling further, needs to break below 105.30.
The USD/JPY pair advanced around the London opening, as the greenback received some attention following new one-year highs in US Treasury yields. The pair topped at 105.84as the yield on the benchmark 10-year note hit 1.394%, now trading in the 105.60 price zone. Demand for the American currency, however, remains well limited across the FX board, despite the sour tone of equities. Investors’ attention is on a US stimulus package, amid expectations it will be passed this week.
Japan published the January Corporate Service Price Index, which came in at -0.5% YoY, better than anticipated but worse than the previous -0.4%. The US will publish today The February Chicago Fed National Activity Index and the Dallas Fed Manufacturing Index.
USD/JPY short-term technical outlook
The USD/JPY pair retains part of its intraday gains, although the near-term picture is bearish. In the 4-hour chart, the pair briefly traded above a mildly bearish 20 SMA but remains below it. It’s also developing above bullish 100 and 200 SMAs, while technical indicators retreat from their midlines, suggesting another leg lower ahead.
Support levels: 105.30 104.95 104.50
Resistance levels: 105.95 106.30 106.75
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.