USD/JPY steadies above 109, looks to register highest daily close since May

  • 10-year US Treasury bond yield adds more than 4% on Tuesday.
  • ISM Non-Manufacturing PMI rose to 54.7 in October from 52.6.
  • US Dollar Index gains traction on the upbeat data.

The combination of broad-based USD strength and upbeat market mood on Tuesday allowed the USD/JPY pair to build on Monday's gains. As of writing, the pair was up 0.51% on the day at 109.12 and is looking to post its first daily close above the 109 mark since May 30th.

Reports suggesting that the United States (US) and China are close to completing the phase-one of the trade deal at the start of the week provided a boost to the risk sentiment. Wall Street's main indexes advanced to fresh record highs on Monday and the 10-year US Treasury bond yield added more than 3%. Reflecting the dominance of risk-on flows, the 10-year T-bond yield is up 4.3% on Tuesday.

USD pushes higher fueled by upbeat data

Earlier in the session, the Institue for Supply Management's (ISM) closely-watched Non-Manufacturing Index (NMI) came in at 54.7 in October following September's 52.6 to reveal an expansion in the economic activity at a robust pace. This reading also beat analysts' estimate of 53.5. 

The US Dollar Index, which staged a technical recovery following last week's slump, gained traction on the upbeat data and rose to its highest level in three weeks at 98.01. At the moment, the index is up 0.4% on the day at 97.95.

In the early trading hours of the Asian session, the Bank of Japan (BoJ) will release the minutes of its September monetary policy meeting. The US economic docket on Wednesday will feature Nonfarm Productivity and Unit Labor Costs data for the third quarter.

Technical levels to watch for


Today last price 109.13
Today Daily Change 0.52
Today Daily Change % 0.48
Today daily open 108.61
Daily SMA20 108.43
Daily SMA50 107.74
Daily SMA100 107.58
Daily SMA200 109.04
Previous Daily High 108.66
Previous Daily Low 108.1
Previous Weekly High 109.29
Previous Weekly Low 107.89
Previous Monthly High 109.29
Previous Monthly Low 106.48
Daily Fibonacci 38.2% 108.44
Daily Fibonacci 61.8% 108.32
Daily Pivot Point S1 108.26
Daily Pivot Point S2 107.91
Daily Pivot Point S3 107.71
Daily Pivot Point R1 108.81
Daily Pivot Point R2 109.01
Daily Pivot Point R3 109.36



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