USD/JPY rises further to highest in two months above 110.20

US Dollar extends gains during the American session, after a brief pause.
USD/JPY boosted by yields and higher equity prices.

Matías Salord FXStreet

The USD/JPY continues to rise and broke above May highs at 110.20 and climbed to 110.29, reaching the highest level since early April. The pair remains near the top, as the US dollar prints fresh highs against most of its rivals.

The rally of USD/JPY started after the release of the ADP reports and was later reinforced by jobless claims data and the ISM service sector report. The better-than-expected numbers bode well for Friday’s official employment report.

Wall Street is having a volatile session. Main indices trimmed losses and the Dow Jones turned positive as it gains 0.08%; at the same time, the Nasdaq drops by 0.95%. The 10-year yield is up by almost 2%, near 1.62%.

Short-term levels

If USD/JPY keeps rising, the next resistance is seen at 110.50, followed by 110.75, and emergences the YDT high at 110.95. A pullback below 110.20 would alleviate the bullish pressure. Still, a daily close above 109.90 would improve the outlook for the greenback. Some overbought readings warn about the odds of more gains for the greenback.

Technical levels

USD/JPY

Overview
Today last price	110.28
Today Daily Change	0.72
Today Daily Change %	0.66
Today daily open	109.56

Trends
Daily SMA20	109.18
Daily SMA50	109.2
Daily SMA100	107.65
Daily SMA200	106.16

Levels
Previous Daily High	109.88
Previous Daily Low	109.4
Previous Weekly High	110.2
Previous Weekly Low	108.56
Previous Monthly High	110.2
Previous Monthly Low	108.34
Daily Fibonacci 38.2%	109.7
Daily Fibonacci 61.8%	109.58
Daily Pivot Point S1	109.34
Daily Pivot Point S2	109.13
Daily Pivot Point S3	108.86
Daily Pivot Point R1	109.83
Daily Pivot Point R2	110.1
Daily Pivot Point R3	110.31

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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