USD/JPY climbs to the highest level since July 5, around 111.00 mark

  • USD/JPY attracted some dip-buying on Monday and turned positive for the fourth straight day.
  • The risk-on mood continued weighing on the safe-haven JPY and extended support to the pair.
  • A modest pickup in the USD demand provided an additional boost and remained supportive.

The USD/JPY pair shot to the highest level since July 5 during the first half of the European session, with bulls now eyeing a sustained move beyond the 111.00 mark.

Following an early dip to the 110.55-50 region, the USD/JPY pair caught some fresh bids on the first day of a new trading week and built on last week's solid rebound from the 109.10 support area. This marked the fourth successive day of a positive move and was sponsored by a combination of factors.

The prevalent risk-on mood – as depicted by an extension of a rally in the equity markets – undermined the safe-haven Japanese yen. This, along with a goodish pickup in the US dollar demand, provided and an additional boost to the USD/JPY pair and remained supportive of the ongoing bullish trajectory.

The USD remained well supported by prospects for an early interest rate hike by the Fed. It is worth recalling that the so-called dot plot indicated policymakers' inclination to raise interest rates in 2022. This, to a larger extent, helped offset a modest pullback in the US Treasury bond yields.

Apart from this, the positive momentum could further be attributed to some follow-through technical buying after last week's sustained break through the 110.25-30 supply zone. A subsequent move beyond the previous monthly highs and the 111.00 mark now seems to have set the stage for further gains.

Market participants now look forward to the US economic docket, highlighting the release of Durable Goods Orders data. This, along with scheduled speeches by a slew of influential FOMC members, might influence the USD price dynamics and produce some trading opportunities around the USD/JPY pair.

Technical levels to watch


Today last price 110.93
Today Daily Change 0.23
Today Daily Change % 0.21
Today daily open 110.7
Daily SMA20 109.89
Daily SMA50 109.88
Daily SMA100 109.89
Daily SMA200 108.26
Previous Daily High 110.79
Previous Daily Low 110.25
Previous Weekly High 110.79
Previous Weekly Low 109.12
Previous Monthly High 110.8
Previous Monthly Low 108.72
Daily Fibonacci 38.2% 110.59
Daily Fibonacci 61.8% 110.46
Daily Pivot Point S1 110.37
Daily Pivot Point S2 110.04
Daily Pivot Point S3 109.83
Daily Pivot Point R1 110.91
Daily Pivot Point R2 111.12
Daily Pivot Point R3 111.45



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: A mixed technical picture leaning with slight bearish bias

EUR/USD is a mixed picture across the weekly, daily and 4-hour time frames. The following is a top-down analysis that arrives at both a bear and bullish conclusion depending on the time frames. Overall, the bias leans to the downside, however. 


GBP/USD stays range-bound near 1.3750, closer to monthly support

GBP/USD remains on the back foot around 1.3765, keeping the weekly trading range during Wednesday’s Asian session. The cable pair inches closer to an ascending support line from September 29. Given the sluggish Momentum and the quote’s latest break below the 50-SMA, the sellers are sneaking in for entries. 


Gold: $1,830's remain elusive, but bull momentum intact

The price of gold has been offered on Tuesday, but it was established in the New York sessions and has found an equilibrium near the 10-day EMA in the current range. XAU/USD is sat in the $1,790s in a quiet start to the Asian session. 

Gold News

Litecoin favors a 20% upswing while LTC bulls remain elusive

Litecoin price has entered a tight congestion zone since the initial spike above the Cloud on October 20th. The trading range has been limited to the Tenkan-Sen at $196 above and Senkou Span B at $188 below. 

Read more

Bank of Canada Rate Decision: Inflation prospects headline policy review Premium

The Bank of Canada is expected to continue tapering its asset purchases and maintain its current rate posture when it concludes it meeting on Wednesday at 10:00 am EDT. Overnight rate projected to be unchanged at 0.25%.

Read more