USD/JPY advances beyond 104.00 on renewed USD strength

USD/JPY is rising for the second straight day on Thursday.
10-year US Treasury bond yield is up nearly 2%.
US Dollar Index climbs above 90.50 ahead of Powell's speech.

Eren Sengezer FXStreet

After spending the majority of the European session in a tight range near 104.00, the USD/JPY pair gained traction and was last seen gaining 0.27% on the day at 104.15.

DXY edges higher ahead of American session

A renewed USD strength seems to be providing a boost to USD/JPY ahead of key events. A sharp decline witnessed in the EUR/USD pair amid the dovish tone seen in the European Central Bank's (ECB) December Meeting Accounts is allowing the greenback to find demand.

The ECB's monthly publication revealed that policymakers were concerned about the developments surrounding the euro exchange rate and the potential negative impact on the inflation outlook. At the moment, the US Dollar Index (DXY) is up 0.18% on the day at 90.52.

Meanwhile, the 10-year US Treasury bond yield is rising nearly 2% at 1.107% and helping USD/JPY preserve its bullish momentum as investors price in additional government spending, which President-elect Joe Biden is expected to unveil later in the day.

The only data featured in the US economic docket will be the US Department of Labor's weekly Initial Jobless Claims report on Thursday. More importantly, FOMC Chairman Jerome Powell will be speaking on the policy outlook at an online event at 1730 GMT.

Technical levels to watch for

USD/JPY

Overview
Today last price	104.08
Today Daily Change	0.20
Today Daily Change %	0.19
Today daily open	103.88

Trends
Daily SMA20	103.5
Daily SMA50	103.95
Daily SMA100	104.67
Daily SMA200	105.86

Levels
Previous Daily High	104
Previous Daily Low	103.53
Previous Weekly High	104.09
Previous Weekly Low	102.59
Previous Monthly High	104.75
Previous Monthly Low	102.88
Daily Fibonacci 38.2%	103.82
Daily Fibonacci 61.8%	103.71
Daily Pivot Point S1	103.6
Daily Pivot Point S2	103.33
Daily Pivot Point S3	103.14
Daily Pivot Point R1	104.07
Daily Pivot Point R2	104.27
Daily Pivot Point R3	104.54

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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