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.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.