USD/JPY: eyes on a break of 110 handle resistance to open 112 territories


  • USD/JPY: bulls break and stay above the previous Tenkan, bullish technicals.
  • USD/JPY: yield spreads remain a critical headwind for the yen.

USD/JPY has popped the resistance of 109.30/40 and did so overnight in Tokyo, climbing to as high as 109.63 by the close of the opening hour. There was a little pullback to 109.43 where bulls stepped in again pushing the pair up to 109.80 for European traders to take over the baton. Currently, USD/JPY is trading at 109.74, up 0.57% on the day, having posted a daily high at 109.85 and low at 109.00.

The move in USD/JPY was technical, but the fundamentals are stacked up when considering that yield spreads remain a critical headwind for the yen, and there are fresh decade wides in the 2Y U.S.-Japan spread as the 10Y pushes back toward its recent highs. The 10's hit 3.01% again today before falling back to 2.99% currently. Today, DXY is sat around the open of 93.04 trading within a range of between 92.8410-93.4160. Risk reversals are shifting in a bearish manner for the yen and EURJPY has rallied back above the psychologically important 130 level - (130.49 the high so far). 

Key events ahead

  • Atlanta Federal Reserve Bank President Raphael Bostic to speak at the World Affairs Council in Jacksonville, Florida at 17:15 GMT.
  • Consumer price inflation due on Thursday.

USD/JPY levels

Technicals lean bullish with RSI on the way to 70 and momentum picking up on the dailies as well. The 200-DMA and 61.8% at 110.18 are eyed through 110.03 1st May high.  Bulls can then look for a break of the 61.8% of the Nov-Mar drop & Nov low at 110.85. This will open up risk towards the 112 handle. To the downside, attention would be towards a break below the 108.50 level. This will open risk towards the 50-D SMA (107.15) before the 2018 low at 104.63 as a key support. 104.20 gives way to a downside measured target of 102.58, guarding a run to 101.19/99.00 as the June-to-November 2016 lows ahead of 100.70/99.00.

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD stays depressed near 1.2050 amid firmer yields, ahead of Powell

EUR/USD remains on the backfoot around 1.2050, as the US dollar rises with Treasury yields. Concerns about the pace of the yield surge dent the risk appetite. Focus on EZ retail sales and US data ahead of Fed Chair Powell’s speech.

EUR/USD News

GBP/USD steadies around 1.3950 as bond bears catch a breather ahead of Powell

GBP/USD picks up bids around 1.3950 following a bounce from 1.3921. UK unilaterally extended NI border checks, EU vows legal response. US Treasury yields regain upside momentum, driving the US dollar higher. Fed’s Powell will be watched to confirm reflation fears.

GBP/USD News

Gold’s fate hinges on Treasury yields, Powell’s speech

Gold struggles with its rebound as DXY firms up with Treasury yields. XAU/USD reached fresh nine-month lows at $1702 amid a renewed uptick in the US Treasury yields, as the bond market turmoil resumed on Wednesday. 

Gold News

Dogecoin Price Forecast: DOGE’s 50% lift-off delayed due to lack of volatility

Dogecoin price broke out of a descending triangle pattern on March 1. Dogecoin price has been traversing the descending triangle formation for more than 20 days—however, the recent swing high lead to a bullish breakout. Now DOGE eyes a 50% upswing to $0.076.

Read more

DXY continues to gain on Wednesday, eyes 91.60

US dollar firm and approaching Feb 4th highs from a significant technical support structure. US economy moderately gathering pace according to the Fed's Beige Book.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures