USD/JPY, contained above 113.00, bounces up to 113.50 area

  • The dollar remains near three-year highs at 113.80, supported above 113.00. 
  • The Japanese yen edges up after a four-day downtrend.
  • USD/JPY's rally is heading to 120.00 – ING.

The US dollar is regaining some ground against the Japanese yen on Wednesday’s US trading session. The pair’s reversal from three-year highs at 113.80 has found support at 113.25, before ticking up to 113.45.

The yen edges up against a softer US dollar

The Japanese yen appreciated earlier on Wednesday, supported by a somewhat weaker dollar, on the back of a flattening US yield curve. The 10-year bond yield has dropped to 1.57% after having peaked at 1.61 on Tuesday, while the 2-year yield has surged to 18-month highs at 0.36%

Furthermore, the US macroeconomic calendar has confirmed the inflationary pressures threatening economic recovery. US consumer prices accelerated at a 0.4% monthly pace and 5.4% year-on-year in September, from 0.3% and 5.3% respectively in September.

These figures bring into question Fed Powell’s theory of a “transitory” high inflation and bolster expectations the Federal Reserve may announce the rolling back of its massive monetary stimulus program in November.

USD/JPY: Seen rallying towards 120.00 – ING

According to the FX Analysis team at ING, however, USD’s rally is far from being finished. They expect the pair to reach prices at 120.00:  “Pressure is building for a topside break out in USD/JPY. We think the US macro/Fed story will be a positive one for the dollar over the next 15 months (USD/JPY to trade to 120), while home-grown developments look slightly JPY bearish.”

Technical levels to watch


Today last price 113.49
Today Daily Change -0.12
Today Daily Change % -0.11
Today daily open 113.61
Daily SMA20 110.99
Daily SMA50 110.35
Daily SMA100 110.22
Daily SMA200 108.76
Previous Daily High 113.79
Previous Daily Low 113
Previous Weekly High 112.25
Previous Weekly Low 110.82
Previous Monthly High 112.08
Previous Monthly Low 109.11
Daily Fibonacci 38.2% 113.49
Daily Fibonacci 61.8% 113.3
Daily Pivot Point S1 113.15
Daily Pivot Point S2 112.68
Daily Pivot Point S3 112.36
Daily Pivot Point R1 113.93
Daily Pivot Point R2 114.25
Daily Pivot Point R3 114.72



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