• USD/JPY advanced for the second day in a row, lifted by higher US yields.
  • The pair continues to consolidate between 100- and 200-day SMAs.

The USD/JPY pair rose modestly during the American session, boosted by higher US yields. The 10-year US Treasury bond yield, which closed the previous three days in the negative territory, staged a recovery and was last at 1.785%.

The dollar managed to capitalize on a batch of mixed macroeconomic data. During the upcoming Asian session, Japanese Consumer Price Index data will be published. Later in the day, US Manufacturing and Services PMI data collected by Markit will be released.

USD/JPY short-term technical outlook

USD/JPY has managed to record its second daily gain in a row, although overall, it continues to trade within its longer-term range. The technical perspective remains neutral in the 4-hour chart, with flat indicators, while the spot consolidates below the 100-period SMA but above the 20- and 200-period ones. In the daily chart, the perspective has improved slightly but remains overall neutral. As mentioned in previous updates, a break below 107.70 (100-day SMA) or above 108.95 (200-day SMA) could propel a decisive move for the pair.

Support levels: 108.23 108.00 107.70

Resistance levels: 108.77 108.95 109.25

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