USD/JPY climbs to fresh weekly high of 106.50, retreats modestly

USD/JPY is rising despite broad-based USD weakness on Tuesday.
10-year US Treasury bond yield is up more than 4%.
US Dollar Index continues to push lower, stays below 93.00.

Eren Sengezer FXStreet

The USD/JPY pair extended its daily advance and touched a fresh weekly high of 106.50 on Tuesday. As of writing, the pair was up 0.35% on a daily basis at 106.34.

Risk rally lifts USD/JPY on Tuesday

Although the USD continues to weaken against the majority of its major rivals, USD/JPY preserves its bullish momentum as the risk-on environment doesn't allow the safe-haven JPY to find demand. After closing the first day of the week in the positive territory, the US Dollar Index (DXY) turned south on Tuesday and was last seen losing 0.33% on the day at 92.98.

Easing US-China tensions following the upbeat tone in the latest round of trade talks and optimism for an effective coronavirus treatment allow risk flows to dominate the markets. Reflecting the positive market environment, the 10-year US Treasury bond yield is up more than 4% on the day and the S&P 500 remains on track to open at a fresh all-time high.

Later in the session, the Conference Board's Consumer Confidence Index and New Home Sales data from the US will be looked upon for fresh impetus. Earlier in the day, the data from the US showed that the Housing Price Index in June increased by 0.9% on a monthly basis but was largely ignored by market participants.

Technical levels to watch for

USD/JPY

Overview
Today last price	106.29
Today Daily Change	0.31
Today Daily Change %	0.29
Today daily open	105.98

Trends
Daily SMA20	105.87
Daily SMA50	106.6
Daily SMA100	107.09
Daily SMA200	108.04

Levels
Previous Daily High	106
Previous Daily Low	105.69
Previous Weekly High	106.68
Previous Weekly Low	105.1
Previous Monthly High	108.16
Previous Monthly Low	104.19
Daily Fibonacci 38.2%	105.88
Daily Fibonacci 61.8%	105.81
Daily Pivot Point S1	105.78
Daily Pivot Point S2	105.58
Daily Pivot Point S3	105.47
Daily Pivot Point R1	106.09
Daily Pivot Point R2	106.2
Daily Pivot Point R3	106.39

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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