USD/JPY Current price: 109.33

  • US Treasury yields remained within familiar levels despite growing optimism.
  • Japanese markets will remain closed until next Thursday.
  • USD/JPY could challenge the weekly high and extend its gains beyond 110.00.

The USD/JPY pair posed a modest intraday advance, ending Tuesday around the 109.30 level, amid resurgent demand for the American currency. The greenback gained partly on the dismal market mood that led the US session but also helped by continued signs of improvement in the world’s largest economy.  The pair gained despite the sour tone of equities and lower US government bond yields, as that on the 10-year Treasury note fell to 1.55%, to later settle at 1.58%.

Japanese markets will remain closed amid the celebration of Children’s Day within the Golden Week. The country will return to work on Thursday, May 6, when the Bank of Japan will publish the Minutes of its latest meeting.

USD/JPY short-term technical outlook

The USD/JPY pair is neutral in the near-term, with the risk skewed to the upside. The 4-hour chart shows that it finished the day above all of its moving averages, with the 20 SMA maintaining its bullish slope after crossing above the longer ones. Technical indicators have lost their bullish strength and turned marginally lower within positive levels. Chances are of a bullish extension on a break above 109.69, the weekly high.

Support levels: 108.90 108.60 108.25  

Resistance levels: 109.70 110.10 110.50

View Live Chart for the USD/JPY

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.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD skyrockets to 1.2150 on poor US jobs figures

EUR/USD has hit a new multi-month peak above 1.2150 after the US reported an increase of only 266,000 jobs in April against nearly one million expected. The dollar is under immense pressure. 


GBP/USD soars toward 1.40 after disappointing Nonfarm Payrolls

GBP/USD has been extending its gains after the US Nonfarm Payrolls badly disappointed with an increase of only 266,000 jobs in April, nearing 1.40. Earlier, sterling benefited from the UK Conservative Party's gains in local elections. 


XAU/USD soars above $1,835 after weak Nonfarm Payrolls

Gold has leaped above $1,835 after the US reported an increase of only 266K jobs in April, far below expectations. Lower US yields support the precious metal.

Gold News

Judge reaffirms order SEC must produce documents on Bitcoin, Ether and XRP in Ripple case

Ripple's victory granted the firm access to the SEC's documents on the three leading cryptocurrencies. The regulatory agency recently denied the possession of these documents.

More Dogecoin News

S&P 500 and Nasdaq: Can the Fed pump anymore after weak jobs report

Well, that was an interesting jobs report. Not too many people were forecasting that one. Just in case you missed it NFP were forecast to come in around the 1 million jobs gained but instead the US only added 266k.

Read more