USD/JPY prints five-month highs near 106.60

  • US dollar holds onto gains amid risk aversion, higher yields.
  • Yen retreats across the board during the American session.

The USD/JPY is rising for the fourth consecutive day, supported by higher US yields and even risk aversion. The pair is trading at 106.60, at the highest level since August. The dollar is about to post the biggest weekly gain in months.

As the US 10-year yield stands at 1.50%, the greenback continues to be supported in the market. Higher yields also weigh on the yen. The Japanese currency dropped across the board as the sell-off in Wall Street eased. Actually, the Nasdaq is in positive territory but not the Dow Jones that drops by 0.95%. Stocks are set for the worst weekly performance since October.

Economic data from the US came in mixed. Personal income and spending rose above expectations with a 10% increase in income during January. The Chicago PMI fell unexpectedly while consumer sentiment was revised higher from the preliminary reading. The numbers have no impact as markets participants focus on Wall Street and the bond market.

USD/JPY bullish trend firm

From a technical perspective, the USD/JPY continues to look bullish, even amid some overbought readings in charts. The pair is about to post the first weekly close above the 55-week moving average since June.

The trend in USD/JPY is to the upside. Considering the sharp increase, a correction should not be ruled out. Support levels might be seen at 106.20, followed by 105.80.

Technical levels


Today last price 106.43
Today Daily Change 0.16
Today Daily Change % 0.15
Today daily open 106.27
Daily SMA20 105.28
Daily SMA50 104.28
Daily SMA100 104.39
Daily SMA200 105.46
Previous Daily High 106.4
Previous Daily Low 105.82
Previous Weekly High 106.22
Previous Weekly Low 104.92
Previous Monthly High 104.94
Previous Monthly Low 102.59
Daily Fibonacci 38.2% 106.18
Daily Fibonacci 61.8% 106.05
Daily Pivot Point S1 105.93
Daily Pivot Point S2 105.59
Daily Pivot Point S3 105.35
Daily Pivot Point R1 106.5
Daily Pivot Point R2 106.74
Daily Pivot Point R3 107.08



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