USD/JPY pares early losses on renewed USD strength, rises to 110.30 area


  • USD/JPY regained its traction in the early American session.
  • US Dollar Index stretched higher to fresh multi-month tops above 92.00.
  • Fed's Bullard said inflation is more intense than expected. 

After dropping below 110.00 earlier in the day, the USD/JPY pair regained its traction and was last seen rising 0.1% on a daily basis at 110.31.

DXY advances to highest level since April 13

Despite the unabated USD strength, falling US Treasury bond yields forced USD/JPY to turn south on Thursday following Wednesday's sharp upsurge. Nevertheless, with the benchmark 10-year US T-bond yield staying flat on the day, the USD valuation became the primary driver of USD/JPY movements ahead of the weekend. Despite Thursday's correction, USD/JPY looks to post weekly gains for the second straight week.

While speaking to CNBC on Friday, St. Louis Fed President James Bullard noted that FOMC Chairman Jerome Powell officially opened taper discussion at this week's meeting and acknowledged that the June meeting presented a "hawkish tilt."

Following these comments, the US Dollar Index (DXY) rose to its highest level in more than two months at 92.21. As of writing, the DXY was up 0.3% on the day at 92.17.

Meanwhile, Wall Street's main indexes remain on track to open deep in the negative territory, suggesting that the risk-averse market environment is likely to help the USD to continue to outperform its rivals in the American session.

Technical levels to watch for

USD/JPY

Overview
Today last price 110.3
Today Daily Change 0.09
Today Daily Change % 0.08
Today daily open 110.21
 
Trends
Daily SMA20 109.6
Daily SMA50 109.16
Daily SMA100 108.31
Daily SMA200 106.37
 
Levels
Previous Daily High 110.82
Previous Daily Low 110.17
Previous Weekly High 109.84
Previous Weekly Low 109.19
Previous Monthly High 110.2
Previous Monthly Low 108.34
Daily Fibonacci 38.2% 110.42
Daily Fibonacci 61.8% 110.57
Daily Pivot Point S1 109.98
Daily Pivot Point S2 109.74
Daily Pivot Point S3 109.32
Daily Pivot Point R1 110.63
Daily Pivot Point R2 111.06
Daily Pivot Point R3 111.29

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD recaptures 1.1900 on upbeat Eurozone GDP

EUR/USD extends the bounce above 1.1900 after the Eurozone Q2 Prelim GDP beat estimates with 2%. The US dollar resumes the downside amid improving market mood, as traders ignore downbeat German growth numbers. US PCE inflation in focus.

EUR/USD News

GBP/USD rises toward 1.4000 as dollar eases ahead of US PCE

GBP/USD bounces back toward 1.4000, as the US dollar eases despite risk-off mood. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound. US PCE inflation awaited. 

GBP/USD News

XAU/USD consolidates in a range, bullish potential intact

Gold was seen oscillating in a narrow trading band through the first half of the European session. A combination of factors extended some support, though the lack of buying warrants caution.

Gold News

Ripple bulldozes resistance, eyes $1.00

XRP price rebound has taken on an impulsive tone, lifting the cross-border remittances token near the convergence of the 200-day SMA with the longstanding inverse head-and-shoulders neckline around $0.775. Ripple falls short of triggering a double bottom pattern.

Read more

US Core PCE Price Index June Preview: Bad will not be bad enough

Inflation is rampant. Consumers, politicians, and economists have noticed. Even the Federal Reserve has concerns, though not enough to modify the easy money policy that is abetting the increases. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures