USD/JPY Current price: 105.88
- Soaring US Treasury yields and substantial gains in Wall Street underpinned the pair.
- Japan Leading Economic Index is expected to be confirmed at 94.9 in December.
- USD/JPY is trading near its February high and bullish in the near-term.
The USD/JPY pair advanced this Wednesday to trade as high as 106.10 to settle around the 105.90 level. US Treasury yields were the main driver for the pair, as long-term ones hit fresh one-year highs. Substantial gains in Wall Street following the US Federal Reserve´s chief second day of testimony fueled it further, spurring risk appetite.
During the upcoming Asian session, Japan will release the final reading of the December Leading Economic Index, foreseen unchanged from the preliminary estimate at 94.9. The Coincident Index for the same period is expected at 87.8.
USD/JPY short-term technical outlook
The USD/JPY pair has trimmed most of its previous week losses and trades near this year’s high at 106.22, the immediate resistance level. The near-term picture is now bullish, as it has advanced beyond all of its moving averages, with the 20 SMA turning higher above the longer ones. Technical indicators have gained ground above their midlines, with the Momentum maintaining its bullish slope and the RSI stable at around 62. Once above the mentioned daily high, the pair has room to extend its advance to 106.95, the high from August 28.
Support levels: 105.70 105.25 104.90
Resistance levels: 106.30 106.60 106.95
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.