USD/JPY Forecast: Bulls looking to reclaim the 107.00 level

Valeria Bednarik FXStreet

USD/JPY Current price: 106.97

Japan´s February Jibun Bank Services PMI improved to 46.3 from 46.1.
The yield on the benchmark 10-year Treasury note neared 1.50%
USD/JPY is neutral-to-bullish in the near term, ready to reclaim 107.00.

The USD/JPY pair hit 107.14 during US trading hours, boosted by Treasury yields. US government bond yields soared ahead of Wall Street’s opening, with the yield on the benchmark 10-year note flirting with 1.50%, to finish the day around 1.47%. Stocks rose in Asia and Europe, but Wall Street was unable to follow the lead, with US indexes ending the day mixed.

Japan published the February Jibun Bank Services PMI, which improved to 46.3 from 46.1. This Thursday, the country will release the February Consumer Confidence Index, foreseen at 30.6 from 29.6 in the previous month.

USD/JPY short-term technical outlook

The USD/JPY pair retreated from the daily high, ending the day a few pips below the 107.00 threshold, maintaining its bullish stance. The pair is neutral-to-bullish, according to the 4-hour chart, as a bullish 20 SMA keeps providing intraday support and leading the way higher. However, technical indicators keep lacking directional strength but developing within positive levels.

Support levels: 106.50 106.15 105.70

Resistance levels: 107.30 107.65 108.00

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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