• Japanese yen tumbles across the board amid risk appetite and higher yields.
  • USD/JPY about to end negative streak with a sharp reversal.

The USD/JPY bottomed at 107.42 hours ago, hitting the lowest level since March 4. Since then it gained more than 60 pips. It rose to 108.14 in a few minutes, making a sharp reversal. As of writing, it is hovering around 108.00, modestly higher for the day but now, momentum points to the upside.

Rising US yields trigger the rally in USD/JPY. The 10-year yield tested at 1.53%, the weekly low and then jumped to 1.579%. Economic data from the US contributed to the rebound. New Home sales rose more than 20% in March and the Markit PMI climbed above expectations in April according to preliminary data, hitting new record highs.

Another factor that weakened the yes was risk appetite. US stocks bounced and turned positive. The Dow Jones is back above 34,000, up by 0.60% while the Nasdaq rises by more than 1%.

If the USD/JPY pair can hold at current levels it would offer a sign of a reversal by recovering 108.00 and the 55-day moving average. The dollar could post the first gains after falling during four consecutive days. On a weekly basis is still in negative ground, headed toward the third weekly decline in a row.

Technical levels

USD/JPY

Overview
Today last price 108
Today Daily Change 0.03
Today Daily Change % 0.03
Today daily open 107.97
 
Trends
Daily SMA20 109.39
Daily SMA50 108.2
Daily SMA100 106.08
Daily SMA200 105.73
 
Levels
Previous Daily High 108.23
Previous Daily Low 107.81
Previous Weekly High 109.77
Previous Weekly Low 108.61
Previous Monthly High 110.97
Previous Monthly Low 106.37
Daily Fibonacci 38.2% 107.97
Daily Fibonacci 61.8% 108.07
Daily Pivot Point S1 107.78
Daily Pivot Point S2 107.59
Daily Pivot Point S3 107.36
Daily Pivot Point R1 108.2
Daily Pivot Point R2 108.42
Daily Pivot Point R3 108.61

 

 

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