USD/JPY is currently111.96 having made a high of 111.97 and a low of 111.83.
USD/JPY opened with a bearish gap that has since been filled and trades sideways in the Tokyo open. USD/JPY, however, broke out of the recent and familiar ranges on the 112 handle in a move below the 21-DMA. The post CPI data low was at 111.69. Also, the US 10-year yield continues to appear to be a powerful contemporaneous indicator of the dollar-yen exchange rate, as analysts at Brown Brother Harriman noted:
"The correlation between the two, on a percentage change basis appears to be near a record high. The US 10-year yield fell 13 bp since the post-US jobs data high near 2.40%. It has fallen through its 20-day moving average for the first time in over a month. The dollar recorded its lows against the yen for the year on September 8, the same day the 10-year yield bottomed just above 2.0%."
N.Korea ready for missile launch ahead of US-South Korea drill
USD/JPY levels
Valeria Bednarik, chief analyst at FXStreet explained that the daily chart indicates that the pair settled below the 23.6% retracement of its September rally, but also noted that technical indicators entered negative territory with sharp downward slopes:
"The 100 and 200 DMAs are converging horizontally between the current price and the 38.2% retracement of the previous month's rally, this last at 111.10. Shorter term, and according to the 4 hours chart, the pair presents a neutral-to-bearish stance, now developing below its 100 SMA, but above the 200 SMA, while technical indicators head marginally lower within negative territory," Valeria noted.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD stays below 1.2450 after UK employment data
GBP/USD trades marginally lower on the day below 1.2450 in the early European session on Tuesday. The data from the UK showed that the ILO Unemployment Rate in February rose to 4.2% from 4%, weighing on Pound Sterling.
EUR/USD steadies above 1.0600, awaits German ZEW and Powell speech
EUR/USD is holding above 1.0600 in the European morning on Tuesday, having hit fresh five-month lows. The pair draws support from sluggish US Treasury bond yields but the rebound appears capped amid a stronger US Dollar and risk-aversion. Germany's ZEW survey and Powell awaited.
Gold price holds steady below $2,400 mark, bullish potential seems intact
Gold price oscillates in a narrow band on Tuesday and remains close to the all-time peak. The worsening Middle East crisis weighs on investors’ sentiment and benefits the metal. Reduced Fed rate cut bets lift the USD to a fresh YTD top and cap gains for the XAU/USD.
SOL primed for a breakout as it completes a rounding bottom pattern
Solana price has conformed to the broader market crash, following in the steps of Bitcoin price that remains in the red below the $65,000 threshold. For SOL, however, the sensational altcoin could have a big move in store.
Key economic and earnings releases to watch
The market’s focus may be on geopolitical issues at the start of this week, but there is a large amount of economic data and more earnings releases to digest in the coming days.