USD/JPY: rising yields limit the downside

Valeria Bednarik FXStreet

USD/JPY Current price: 112.09

The USD/JPY pair eases this Wednesday, but holds at the upper end of its weekly range, as despite dollar's weakness, yen's gains are limited by US yields that extend their advance. The 10-year note benchmark is currently at 2.22% after settling yesterday at 2.20%. An intraday decline met buying interest at 111.82, but the price is unable to surpass the high set at 112.46. The wait-and-see stance extends ahead of central bankers, set to participate in a discussion panel that starts in a few minutes.

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Technically, the 4 hours chart shows that the price holds above a Fibonacci support, around 112.00, while technical indicators are retreating modestly within positive territory, but still well above their mid-lines . The 100 SMA in the mentioned chart gains bullish strength below the current level, but the 200 SMA maintains its bearish slope, both too far away to be relevant today.

Support levels: 111.80 111.50 111.10

Resistance levels: 112.45 112.90 113.20

View Live Chart for the USD/JPY

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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