USD/JPY: bulls looking for a break to 109.32?


  • USD/JPY: bulls trigger the buy stops and the pair takes off.
  • USD/JPY: where next, 110 on the cards after 109.32 cleared?

USD/JPY overcame 108.00 option barriers and triggered buy stops above on Monday in European trade. Currently, USD/JPY is trading at 108.66, up 0.93% on the day, having posted a daily high at 108.73 and low at 107.66.

Higher US yields,  month-end approaching, (importers are piling in), and despite lower stock prices, there is a limit to the downside in the benchmarks, (falling risk aversion supportive as well),  the yen is testing fresh lows at levels last seen in mid-February. 

USD/JPY has been extending its range to the upside for several sessions and risk is now open to the 110 handle with the US 10-yrs looking in at a break on the 3% handle.

Other key news for USD/JPY traders

"Widening interest rate differentials remain a key headwind for JPY and the 10Y U.S.-Japan spread has extended to a fresh 10 year high above 290bpts. Comments from BoJ Gov. Kuroda have highlighted the need to maintain ‘strong’ accommodation, offsetting domestic political developments. PM Abe’s support has fallen to fresh lows, threatening the future of his Abenomics policy agenda," analysts at Scotiabank explained.

USD/JPY levels

Analysts at Commerzbank argue that the 50% retracement at 108.98 and the top of the cloud at 109.32 are levels that are next in the line of fire. "Dips lower will find initial support at the 106.83 55 day ma and the 105.66 current April low. Where are we wrong? Below the March low at 104.56 would introduce scope to 103.22, then 100.69 (Fibonacci retracements). This is not favoured," the analysts added.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD retreats after strong NFP, weak German data

EUR/USD is trading below   1.11 after US Non-Farm Payrolls beat expectations with 266K and mixed wage growth. Earlier, weak German data weighed on the euro. Updates on trade are awaited.

EUR/USD News

GBP/USD shrugs off strong NFP, focuses on UK elections

GBP/USD is trading below 1.3150 but off the post-NFP lows. The US gained more jobs than expected. The Conservatives remain in the lead ahead of the debate between PM Johnson and Labour leader Corbyn.

GBP/USD News

US recession? Not so fast, a calm look at the economy and currencies ahead of the NFP

Recent US economic indicators have been downbeat, but they include silver linings and are backed by robust consumption. Valeria Bednarik, Joseph Trevisani, and Yohay Elam...

Read more

Gold drops to fresh multi-day lows on upbeat NFP report

Gold faded an intraday bullish spike to the $1480 area and tumbled to fresh multi-day lows, around the $1465 region in reaction to upbeat US monthly jobs report.

Gold News

USD/JPY: bearish ahead of US employment figures

Japanese data missed the market’s expectations, triggering fresh concerns about the economy. Focus on US employment figures, market players anticipate dismal numbers. USD/JPY is technically bearish could break below the 108.00 level.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures