- Finds support from fresh Treasury yields buying, risk-on.
- Bulls await further momentum from the US data and Fedspeaks.
The USD/JPY pair bounced-off the 5-DMA support at 107.27 and now looks to regain the 107.50 barrier amid a fresh rally in Treasury yields, especially the longer-duration yields, with the 10-year yields trading near monthly tops of 2.895 percent, up 1 percent on the day.
More so, improved risk sentiment amid rising oil prices and mostly higher European equities reduce the demand for the safe-haven Yen, in turn aiding the rebound in the spot. Both crude benchmarks rally over 1% so far this session.
Focus now turns towards the US Philly Fed manufacturing index and jobless claims for fresh dollar trades, after the recent slew of upbeat US fundamentals while Fedspeaks will also keep the trader busy later on Thursday.
USD/JPY levels to watch
FXStreet’s Analyst, Omkar Godbole noted: “The momentum studies are biased bullish: 5, 10, 21-day MA is trending north, indicating short-term bullish setup. The relative strength index (RSI) holds above 50.00 and on the rise. Further, a big rounding bottom pattern is sighted in the 4-hour chart. A bullish 5MA and 10MA crossover is seen in the weekly chart. Clearly, things are looking good for the USD bulls. So, the pair could rally to 108.43 (descending/bearish biased 5-month MA). That said, a daily close below 107.62 (April 10 low) would put the bears back into the driver's seat.”
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 rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD holds above 1.2350 after UK PMIs
GBP/USD clings to modest daily gains above 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin price.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.