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

View Live Chart for the USD/JPY


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