USD/JPY intermarket: risk-on Wall Street and yields up, USD/JPY up to challenge 111 handle

Ross J Burland FXStreet

Currently, USD/JPY is trading at 110.76, up 0.09% on the day, having posted a daily high at 110.84 and low at 110.17.

USD/JPY has rallied with a recovery in the equities on Wall Street. Benchmarks such as the Dow Jones and S&P 500 has tallied up gains exceeding the pre-healthcare failures levels in the case of the latter while the Dow Jones is 90% of the way there.

At the same time, US yields are up, with the 10-year rallying from 2.3585 to 2.4070 so far as risk turns positive. Should 10 years move back to 2.44 and 2.51, the spread between the US and Japan could equate to USD/JPY moving back onto the 111 and the 113 handles respectively.

USD/JPY levels

Buy USD/JPY with target at 112.75 - Westpac

While the market continues to recover and yields rise, rallies could find initial resistance at 113.44 and 16th March highs. For a highly bullish case, a break through 115.62 and the 17th Jan weekly high opens the 16-month resistance line at 117.52. To the downside, 109.90 is key as being the 50% of the Nov/Dec rally.

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 struggles below 1.1800 ahead of US data, Fedspeak

EUR/USD remains trapped in a tight range below 1.1800 in the European session on Tuesday. The pair struggles amid a modest US Dollar strength and an improvement in risk sentiment, even as US tariff uncertainty lingers. The focus now remains on the US data and Fedspeak.

GBP/USD stays defensive below 1.3500 as USD firms up

GBP/USD stays on the back foot below 1.3500 in the European trading hours on Tuesday. The pair declines as the US Dollar rebounds from losses recorded over the previous two sessions. Traders will focus on the US weekly ADP Employment Change and Consumer Confidence data due later in the day, along with speeches from Federal Reserve officials.

Gold holds pullback below $5,200 amid USD uptick

Gold holds moderate losses below $5,200 in European trading on Tuesday, though it lacks follow-through selling. Following the previous day's knee-jerk fall in reaction to US President Donald Trump's new global tariffs and the subsequent bounce, the US Dollar attracts fresh buyers ahead of mid-tier data and Fedspeak.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.

AI-scare trade and tariff uncertainty takes hold

It was quite a day, with AI-disruption fears and tariff uncertainty triggering a risk-off session. By now, it's nearly impossible to have missed the Supreme Court's 6-3 decision that struck down US President Donald Trump's reciprocal tariffs last Friday.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.