• The US dollar advances 0.59% in the week vs. the Japanese yen.
  • Higher US T-bond yields rise three basis points to close to 1.50%.
  • USD/JPY Price Forecast: It has an upward bias, though accelerating the trend would need a break above 114.70.

The US dollar extends its rally against the Japanese yen, advancing for the third consecutive day, trading at 114.36 during the New York session at press time. Positive news on the Covid-19 Omicron-variant front is cheered by investors as the Santa Rally finally kicked in. European equity indices rise between 0.93% and 1.42%, while US stock indices advance between 0.62% and 0.70%.

The US Food and Drug Administration (FDA) has authorized Covid-19 treatments in the last two days. On Wednesday, it approved Pfizer’s Plaxovid, treatment for high-risk patients. By Thursday, Molnupravir, a treatment pill developed by Merck, received the green light from the FDA.  Both treatments would help to curb rising infections from overwhelming hospitals.

US T-bond yields rallied on the news, with the 10-year US Treasury yield rising three basis points, closing at 1.50%, and underpining the USD/JPY. In the meantime, the US Dollar Index, which tracks the buck’s performance against a basket of six rivals, is barely up 0.03%, at 96.10.

USD/JPY Price Forecast: Technical outlook

The USD/JPY daily chart depicts the pair has having an upside bias, supported by the daily moving averages (DMAs) residing below the spot price. Additionally, an upslope trendline drawn from the September swing lows towards the late November lows stalled sell-offs moves three times.

To the upside, the USD/JPY's first line of resistance would be the October 20 cycle high at 114.70. A breach of the latter could pave the way for further USD/JPY gains. The next resistance would be the psychological 115.00 figure, followed by the November 24 cycle high and YTD high at 115.52.

On the flip side, the USD/JPY's first demand zone would be the 50-DMA at 113.87. A break beneath that support would open the door for a test of the upsloping trendline around the 113.60-75 range, followed by the December 17 pivot low at 113.14.

USD/JPY

Overview
Today last price 114.36
Today Daily Change 0.28
Today Daily Change % 0.25
Today daily open 114.08
 
Trends
Daily SMA20 113.6
Daily SMA50 113.87
Daily SMA100 112.15
Daily SMA200 110.88
 
Levels
Previous Daily High 114.37
Previous Daily Low 113.95
Previous Weekly High 114.27
Previous Weekly Low 113.14
Previous Monthly High 115.52
Previous Monthly Low 112.53
Daily Fibonacci 38.2% 114.11
Daily Fibonacci 61.8% 114.21
Daily Pivot Point S1 113.9
Daily Pivot Point S2 113.71
Daily Pivot Point S3 113.48
Daily Pivot Point R1 114.32
Daily Pivot Point R2 114.56
Daily Pivot Point R3 114.74

 

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.

EUR/USD News

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 

GBP/USD News

Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures