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.

Ross J Burland FXStreet

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.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD gathers traction, approaches 1.1800

EUR/USD manages to reverse Tuesday’s pullback, advancing to two-day highs near the 1.1800 hurdle in the latter part of Wednesday’s session. The pair’s decent uptick comes on the back of the modest retracement in the US Dollar, as investors continue to closely follow developments on the trade front and news from the White House in the wake of President Trump’s SOTU speech.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

Crypto Today: Bitcoin, Ethereum, XRP test rebound strength as ETF inflows return

Bitcoin, Ethereum and Ripple are gaining traction at the time of writing on Wednesday, amid persistent market doldrums. The Crypto King is up over 2% intraday, trading above $65,000 from the day’s opening of $64,058.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.