USD/JPY moves higher to 114.20, session tops

Spot climbs higher on US yields rally
DXY drops to session lows near 93.85
US data on sight

Pablo Piovano FXStreet

The Japanese currency remains entrenched into the negative ground on Wednesday and is now helping USD/JPY to advance to fresh 3-month tops in the 114.30 area.

USD/JPY in multi-week tops

The buying pressure around the pair stays on the rise today following the up move in yields of the US 10-year reference to fresh tops around the critical 2.45% neighbourhood, or 7-month peaks.

However, the US Dollar Index (DXY) continues to ignore the bull run in yields and is currently testing daily lows in the 93.90/85 band, down smalls for the day.

In the meantime, investors remain anxious waiting for President Trump’s decision on the successor of Chief Janet Yellen. It is worth mentioning that (pro-USD?) candidate J.Taylor still appears as the front runner over J.Powell and K.Warsh.

In the US data space, September’s new home sales and durable goods orders are next on tap ahead of the EIA’s weekly report on crude oil inventories. In Japan, critical inflation figures are due on Friday.

USD/JPY levels to consider

As of writing the pair is gaining 0.21% at 114.15 and a break above 114.25 (high Oct.25) would open the door to 114.39 (high May 11) and finally 114.51 (high Jul.11). On the other hand, the immediate support is located at 113.25 (low Oct.24) seconded by 112.90 (10-day sma) and then 111.75 (200-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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