- Higher equity prices and US yields weigh on the Japanese yen.
- US economic data released on Tuesday surpass expectations.
- USD/JPY breaks key resistance and strengthens positive outlook.
The USD/JPY broke above 114.30 and jumped to test the multi-year high below 114.70. It peaked at 114.63, the strongest in four weeks and then pulled back modestly. The combination of higher US yields, rising equity prices and a rally of the dollar across the board keeps boosting the pair.
US economic data released on Tuesday came in above expectations (retail sales and industrial production) and boosted US yields. The 10-year Treasury reached 1.63%, before pulling back.
The economic figures show an improvement in economic activity that fuels expectations about an adjustment in Federal Reserve’s monetary policy sooner than expected. The numbers also help the greenback that is rising sharply. The DXY stands at fresh 16-month highs above 95.10, up 0.20% for the day.
USD/JPY short-term outlook
The pair trades near the multi-year high area around 114.70. While above 114.40 the bullish tone will remain intact and another test of the recent top seems likely. A break above should clear the way to more gains.
A slide back under 114.30 would put USD/JPY back into the range between 114.30 and 113.40, with an intermediate level at 113.75.
|Today last price||114.52|
|Today Daily Change||0.35|
|Today Daily Change %||0.31|
|Today daily open||114.17|
|Previous Daily High||114.22|
|Previous Daily Low||113.75|
|Previous Weekly High||114.3|
|Previous Weekly Low||112.73|
|Previous Monthly High||114.7|
|Previous Monthly Low||110.82|
|Daily Fibonacci 38.2%||114.04|
|Daily Fibonacci 61.8%||113.93|
|Daily Pivot Point S1||113.87|
|Daily Pivot Point S2||113.58|
|Daily Pivot Point S3||113.41|
|Daily Pivot Point R1||114.34|
|Daily Pivot Point R2||114.51|
|Daily Pivot Point R3||114.8|
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.