USD/JPY jumps to highest in three days above 133.00 boosted by US Treasury yields

Japanese Yen is among the worst performers weakened by higher US yields.
Dollar posts mixed results after US data.
USD/JPY up on Friday, and down for the week.

Matías Salord FXStreet

The USD/JPY broke above 132.80 and climbed to 133.15, reaching the highest level since Tuesday. US Treasury yields rose following several economic reports from the US and weighed on the Japanese Yen.

US data: more positives than negatives

The key report from the US was the Core Personal Consumption Expenditure Price Index which rose 0.2% in November, in line with expectations, and 4.7% from a year ago, a decline from the 5% in October. The inflation indicators are closely watched by the Federal Reserve.

Durable Goods Orders fell more than expected by 2.6%. The Michigan Consumer Sentiment Index came in at 59.7 in December, above the 59.1 of the preliminary estimate. New Home Sales surprised with a 5.8% increase in November to an annual rate of 640K, above the 600K of market consensus.

After all the economic reports, equity prices in Wall Street are heading lower, just like what happened on Thursday, when positive figures triggered a selloff. The difference on Friday is that bond yields are reacting more strongly, hence boosting USD/JPY.

The pair is hovering below 133.00, with a bullish intraday bias. Above the daily high the next resistance might be located around the 133.50 area. On the downside, the key support is the 132.50/60 band, a confluence of a horizontal level and an uptrend line from the weekly low. A break lower would change the intraday bias to neutral/negative.

Technical levels

USD/JPY

Overview
Today last price	132.94
Today Daily Change	0.57
Today Daily Change %	0.43
Today daily open	132.37

Trends
Daily SMA20	136.23
Daily SMA50	141.49
Daily SMA100	141.17
Daily SMA200	135.86

Levels
Previous Daily High	132.72
Previous Daily Low	131.64
Previous Weekly High	138.18
Previous Weekly Low	134.52
Previous Monthly High	148.82
Previous Monthly Low	137.5
Daily Fibonacci 38.2%	132.31
Daily Fibonacci 61.8%	132.05
Daily Pivot Point S1	131.77
Daily Pivot Point S2	131.17
Daily Pivot Point S3	130.7
Daily Pivot Point R1	132.85
Daily Pivot Point R2	133.32
Daily Pivot Point R3	133.92

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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