USD/JPY Price Analysis: The break of March 2017 at 115.51 would open the door for 116.00


  • USD/JPY continues its three-day rally amid risk-off sentiment despite falling US bond yields.
  • The US 10-year Treasury yields remain flat at 1.653%.
  • Positive US economic data helped USD/JPY bulls to break the 115.00 figure, eye 116.00.

The USD/JPY extend its rally to three days in a row advancing 0.23%, trading at 115.42 during the New York session at the time of writing. The market mood is in risk-off mode, with US stock indexes falling, US bond yields in the short-term rise, while the long-end dropped, while the greenback stays firm.

The US Dollar Index, a gauge of the greenback’s value against six rivals, advance 0.39%, sitting at 96.87 at press time. Contrarily, the US T-bond 10-year benchmark note drops one basis point, stays at 1.653%.

During the Asian and European sessions, the USD/JPY dipped as low as 114.83, right at the 1-hour 50-simple moving average (SMA), bouncing off those levels up to a break of the 115.00 figure. As US economic data was released during the New York session and the greenback strengthened, the USD/JPY advanced. 

USD/JPY Price Forecast: Technical outlook

The USD/JPY has an upward bias, depicted by the daily moving averages (DMA’s) located below the spot price, with an upslope, confirming the bullish bias. On Tuesday, USD bulls failed to break above the 115.00, which they accomplished on Wednesday, thus negating the bearish wedge.

At press time, the pair is testing the March 2017 swing high at 115.51 as well as the 115.60 61.8% Fibonacci retracement of the move down from 2015. A breach of that level would expose the psychological 116.00 level. 

On the flip side, failure to overcome the March 2017 strong resistance could pave the way for a correction. The first demand zone would be 115.00, followed by the October 18 swing high-turned support at 114.48, and then the psychological 114.00.

USD/JPY

Overview
Today last price 115.42
Today Daily Change 0.27
Today Daily Change % 0.23
Today daily open 115.15
 
Trends
Daily SMA20 113.99
Daily SMA50 112.78
Daily SMA100 111.36
Daily SMA200 110.2
 
Levels
Previous Daily High 115.16
Previous Daily Low 114.48
Previous Weekly High 114.97
Previous Weekly Low 113.59
Previous Monthly High 114.7
Previous Monthly Low 110.82
Daily Fibonacci 38.2% 114.9
Daily Fibonacci 61.8% 114.74
Daily Pivot Point S1 114.71
Daily Pivot Point S2 114.26
Daily Pivot Point S3 114.04
Daily Pivot Point R1 115.38
Daily Pivot Point R2 115.6
Daily Pivot Point R3 116.05

 

 

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 climbs above 1.1250 as investors eye coronavirus headlines

EUR/USD preserved its recovery momentum early Friday and rose above 1.1250 during the European trading hours. Markets are doubting the Fed's policy tightening prospects as the new coronavirus variant revives concerns over the economic recovery losing steam.

EUR/USD News

GBP/USD rebounds toward mid-1.3300s on broad dollar weakness

GBP/USD reversed its direction after dipping below 1.3300 earlier in the day and started to push higher toward 1.3350. The greenback is facing heavy selling pressure amid the sharp decline witnessed in the 10-year US Treasury bond yield.

GBP/USD News

Gold clings to strong gains above $1,800 as US T-bond yields plunge Premium

Gold staged a decisive rebound on Friday and reclaimed $1,800. The intense flight to safety is causing US Treasury bond yields to fall sharply and fueling XAU/USD's rally. Investors await news on vaccines' effectiveness against the new COVID variant.

Gold News

Cardano could tank to $1 if ADA fails to defend crucial support

Cardano price is currently hovering below a freshly shattered 6-hour demand zone, ranging from $1.68 to $1.79. This resulting crash could extend to the immediate and critical foothold at $1.40. 

Read more

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures