- USD/JPY buying regains momentum as risk-on sentiment strengthens.
- Widening US-Japan 10-year yield spread remains JPY-negative.
- Next of relevance remains US Housing data and Consumer Sentiment.
The USD/JPY pair picked up fresh bids and hit session highs near 106.50 levels in the European session, as the recovery in the risk sentiment gathered steam, as reflected by the extension of the relief rally in the Treasury yields and S&P 500 futures.
The optimistic comments on trade by the US President Trump overnight has prompted a positive shift in the risk sentiment and diminished the bids for the safe-havens such as the Yen.
Focus on US data for fresh impetus
The buying interest around the US dollar remains unabated amid receding US recession fears, in the wake of upbeat US retail sales data, further collaborating to the upbeat tone in the spot.
Also, the widening US-Japanese 10-year bond yields favor the ongoing upside momentum, as it weighs negatively on the Japanese currency. The Japanese 10-year bond yields fell to a three-year low earlier today.
Markets now await the US Housing Starts, Building Permits and Michigan Consumer Sentiment Index to determine the next direction in the US dollar. Should the data disappoint, the recession fears are likely to resurface and could hit the risk sentiment once again.
USD/JPY Technical levels
|Today last price||106.46|
|Today Daily Change||0.35|
|Today Daily Change %||0.33|
|Today daily open||106.11|
|Previous Daily High||106.78|
|Previous Daily Low||105.7|
|Previous Weekly High||107.09|
|Previous Weekly Low||105.26|
|Previous Monthly High||109.01|
|Previous Monthly Low||107.21|
|Daily Fibonacci 38.2%||106.37|
|Daily Fibonacci 61.8%||106.12|
|Daily Pivot Point S1||105.62|
|Daily Pivot Point S2||105.12|
|Daily Pivot Point S3||104.53|
|Daily Pivot Point R1||106.7|
|Daily Pivot Point R2||107.28|
|Daily Pivot Point R3||107.78|
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.