USD/JPY Forecast: Bulls eye the 108.16 level

Valeria Bednarik FXStreet

USD/JPY Current price: 107.33

The Japanese Consumer Confidence Index improved from 29.6 to 33.8 in February.
US Federal Reserve chief Jerome Powell will offer a speech this Thursday.
USD/JPY trades at fresh 2021 highs, retaining its bullish stance.

Asian traders pushed the dollar up amid rising US Treasury yields, with the greenback retaining most of its gains as stocks turn red. The USD/JPY pair trades at fresh highs in the 107.30 price zone, its highest since July 2020. Speculative interest waits for a speech from US Federal Reserve’s head, Jerome Powell, eyeing comments on yields and possible adjustments to the monetary policy.

Japan published at the beginning of the day the February Consumer Confidence Index, which improved from 29.6 to 33.8. Later today, the US will publish initial Jobless Claims for the week ended February 26, foreseen at 750K. The country will also release February Challenger Job cuts and Q4 Nonfarm Productivity.

USD/JPY short-term technical outlook

The USD/JPY pair is overbought but could keep advancing in the near-term. In the 4-hour chart, the pair picked up and trades well above a bullish 20 SMA, currently at 106.90. The Momentum indicator maintains its bullish slope above its 100 level while the RSI indicator consolidates around 74, all of which supports a bullish continuation towards 108.16, July 2020 monthly high.

Support levels: 106.90 106.50 106.10

Resistance levels: 107.40 107.85 108.14

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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