• 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.

Technical levels

USD/JPY

Overview
Today last price 114.52
Today Daily Change 0.35
Today Daily Change % 0.31
Today daily open 114.17
 
Trends
Daily SMA20 113.83
Daily SMA50 112.24
Daily SMA100 111.14
Daily SMA200 109.92
 
Levels
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

 

 

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