USD/JPY prints fresh five-week highs, still unable to run above 115.35

US dollar jumps as US 10-year yield hits 1.60% and the 30-year 1.99%.
USD/JPY rises for the fourth day in a row, eyes 115.35/50.

Matías Salord FXStreet

The USD/JPY continues to move to the upside, and it has reached a strong resistance area located between 115.35 and 115.50. It printed a fresh five-week high at 115.36, slightly above the previous top boosted by a stronger rally across the board.

The DXY is up 0.60% so far on Monday, trading above 96.20. Equity prices are modestly higher in Wall Street. The relevant moves at the beginning of the year come from the bond market as Treasuries slide. The US-30 year is at 1.999%, the highest in a month, while the 10-year rose above 1.61%. The 2-year stands above 0.80%, at the highest since March 2020.

Economic data from the US on Monday showed no surprises on Monday. The Markit Manufacturing PMI (final) came in at 57.7 in December, below the flash reading of 57.8. On Wednesday, the ADP employment report is due and on Friday the non-farm payroll. “The recent COVID surge likely came too late to prevent a strong and above-consensus reading for payrolls in this week's report for December”, argue analysts at TD Securities. They forecast an increase in payrolls of 500K.

Looking at recent highs

The USD/JPY peaked in November at 115.51, a multi-year high. From the current level to the mentioned high, resistance is expected to emerge. With the pair around 115.30, the positive momentum remains intact.

On the contrary, a slide under 115.00 would clear the way for a correction, with support levels seen at 114.75 and 114.60.

Technical levels

USD/JPY

Overview
Today last price	115.29
Today Daily Change	0.19
Today Daily Change %	0.17
Today daily open	115.1

Trends
Daily SMA20	114.09
Daily SMA50	113.97
Daily SMA100	112.47
Daily SMA200	111.08

Levels
Previous Daily High	115.2
Previous Daily Low	115
Previous Weekly High	115.21
Previous Weekly Low	114.45
Previous Monthly High	115.21
Previous Monthly Low	112.56
Daily Fibonacci 38.2%	115.13
Daily Fibonacci 61.8%	115.08
Daily Pivot Point S1	115
Daily Pivot Point S2	114.91
Daily Pivot Point S3	114.81
Daily Pivot Point R1	115.2
Daily Pivot Point R2	115.3
Daily Pivot Point R3	115.39

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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