USD/JPY Forecast: Lagging US Yields keep the JPY buoyed

Valeria Bednarik FXStreet

USD/JPY Current price: 113.01

View Live Chart for the USD/JPY

Lagging US Yields keep the JPY buoyed. Despite the strong opening of European equities, the USD/JPY pair remains subdued, having trimmed most of its modest weekly gains, and trading barely above the 113.00 figure ahead of the US opening. The main reason behind yen's strength is US Treasury bond yields, as despite Wall Street's rally to record highs, yields have barely recovered from near monthly lows. As commented on the previous update, the political-risk background is another factor underpinning safe-haven assets, such as the JPY and gold. The pair is biased lower according to the 1 hour chart, as the price is back below its moving averages, with the 100 SMA providing an immediate resistance around 113.30 and technical indicators hovering near oversold readings with no aims of turning higher. In the 4 hours chart, the price is a handful of pips below its 100 SMA whilst technical indicators have turned flat around their mid-lines, as investors enter wait-and-see mode ahead of the release of FOMC Minutes.

Support levels: 112.90 112.50 112.10

Resistance levels: 113.30 113.65 114.00

Interested in USD/JPY technicals? Check out the key levels

1. R3 113.22
2. R2 113.10
3. R1 113.01
PP 112.89
1. S1 112.79
2. S2 112.68
3. S3 112.58

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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