USD/JPY breaks above 109.50 as US yields keep rising

Yen tumbles amid higher US yields.
US Dollar gains momentum during the American session.

Matías Salord FXStreet

The USD/JPY rose further and climbed to 109.56, reaching the highest level since May 3. The US dollar is having the best day in more than a month versus the yen and it heads toward the higher daily close in a month.

The US dollar gained momentum following higher-than-expected inflation data in the US. The numbers triggered a decline in Treasuries sending the 10-year to 1.68%, a monthly high.

The greenback is rising across the board and the yen is posting mixed results. While lower yields keep the yen pressured, risk aversion contributes to the demand for the safe-haven currency.

The Dow Jones is falling 1.29% and the Nasdaq tumbled 2.39%. The combination of risk aversion and higher yields are adding extra pressure on commodity and emerging market currencies.

USD/JPY breaking above 109.50

A consolidation above 109.50 would strengthen the technical outlook for the greenback versus the yen. The next resistance is seen at 109.85 followed by the 110.00 area. A decline back under 109.10 would alleviate the bullish tone.

Technical levels

USD/JPY

Overview
Today last price	109.53
Today Daily Change	0.91
Today Daily Change %	0.84
Today daily open	108.62

Trends
Daily SMA20	108.66
Daily SMA50	108.98
Daily SMA100	106.73
Daily SMA200	105.91

Levels
Previous Daily High	108.98
Previous Daily Low	108.35
Previous Weekly High	109.7
Previous Weekly Low	108.34
Previous Monthly High	110.85
Previous Monthly Low	107.48
Daily Fibonacci 38.2%	108.59
Daily Fibonacci 61.8%	108.74
Daily Pivot Point S1	108.32
Daily Pivot Point S2	108.02
Daily Pivot Point S3	107.69
Daily Pivot Point R1	108.96
Daily Pivot Point R2	109.29
Daily Pivot Point R3	109.59

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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