USD/JPY Forecast: Pressuring weekly highs 105.00 at sight

Valeria Bednarik FXStreet

USD/JPY Current price: 104.55

Wall Street surged, with the Dow Jones surpassing 30,000 for the first time ever.
Japan October Corporate Service Price Index, foreseen at 1.2% YoY, down from the previous 1.3%.
USD/JPY trades at the upper end of its weekly range could run past 105.00.

The USD/JPY pair reached a fresh weekly high of 104.75 during the American session, following Wall Street´s lead and as the Dow Jones Industrial Average surpassed the 30,000 threshold for the first time ever. Cooling US political tensions, vaccine hopes and encouraging US data released earlier this week boosted high-yielding assets. Also, US Treasury yields advanced, with the yield on the benchmark 10-year note hitting 0.89%.

Japan has had a light macroeconomic week so far, without releasing relevant data. This Wednesday, the country will publish October Corporate Service Price Index, foreseen at 1.2% YoY, down from the previous 1.3%.

USD/JPY short-term technical outlook

The USD/JPY pair holds on to most of its daily gains, trading around 104.60, lacking bullish momentum. The 4-hour chart shows that it’s trading below a bullish 20 SMA and a flat 100 SMA, but also that it met sellers around the 200 SMA. In the meantime, technical indicators turned flat within positive levels, maintaining the risk skewed to the upside.

Support levels: 104.30 103.95 103.50

Resistance levels: 105.00 105.40 105.80

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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