USD/JPY hits four-week highs above 114.50, tests multi-year highs

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.

Matías Salord FXStreet

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

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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