USD/JPY prints fresh highs in Tokyo through 110.50 but lacks follow through


  • USD/JPY has posted a fresh high in Tokyo at 110.51.
  • USD/JPY is currently trading at 110.47, tucked in just below a fresh high and up from the Asian low of 110.33.

The US dollar has made a series of daily gains as markets move sideways with a lack of impetus as we await US CPI and retail sales this week and some potential perspective on the US economy from various Fed speakers this week. 

In the meantime, the US 10yr treasury yield climbed from 2.63% to 2.66%, while 2yr yields rose from 2.46% to 2.49% and offer a relatively good return on short term bills compared to elsewhere, hence the dollar remains bid. However, the futures markets still price little chance of any further Fed rate hikes in this cycle, with a 15% chance of a cut by December. The Fed is data dependent and should we continue to see growth in the jobs market and wage inflation, the Fed is likely to come back into vogue and rate rises should support the dollar.  

Elsewhere, we will wait to see how various geopolitical matters play out with US/China trade talks underway again in Beijing this week, PM May to grace The Commons with a statement on Brexit and the mess in Washington with a potential partial shutdown again.

USD/JPY levels

Valeria Bednarik, the Chief Analyst at FXStreet, explained that the pair reached a strong static resistance without retreating much after the first test of the area, a sign that bulls are in control of the pair:

"The 4hours chart shows that the RSI entered overbought territory, rather a result of the previous range trading than of a strong upward momentum, as the pair is measly 30 pips above its previous monthly high. Still, the pair is also above its 100 and 200 SMA which lack directional strength above a major Fibonacci support at 109.05, all of which maintains the risk skewed to the upside, with room for an extension up to the 111.40 price zone."

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD chops around amid end-of-month flows, ahead of Trump

EUR/USD is battling 1.11, close to the two-month highs amid choppy trading. Hopes for a fiscal boost in Europe and mixed satisfactory data have supported the currency pair. , Sino-American tensions are rising and investors await President Trump's China announcement.

EUR/USD News

GBP/USD advances amid US dollar weakness, shrugging off concerns

GBP/USD is trading above 1.23, edging higher amid US dollar weakness and Britain's gradual reopening. Intensifying Sino-American tensions and the Brexit impasse are ignored. 

GBP/USD News

Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures