USD/JPY Technical Analysis: Approaching 110.00 as yield differentials tease triangle breakdown

USD/JPY is currently trading in the red at 110.29 and could soon drop to the psychological level of 110.00, having dived out of the rising channel in early Asia. 

The spread between the 10-year US and Japanese government bond yield (US 10Y-JP10Y)is teasing a symmetrical triangle breakdown, which if confirmed, would open the doors to 255 basis points (Jan. 3 low). That would only add to the bullish tone around the anti-risk JPY. 

A strong bounce from the ascending 10-day MA, currently at 110.19, would revive the immediate bullish outlook. 

USD/JPY 4-hour chart

US10Y-JP10Y daily chart

Trend: Bearish

    1. R3 111.62
    2. R2 111.38
    3. R1 110.95
  1. PP 110.7
    1. S1 110.27
    2. S2 110.02
    3. S3 109.6


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

Latest Forex News

Editors’ Picks

EUR/USD recaptures 1.08 as coronavirus fears weigh on market mood

EUR/USD has recaptured 1.08 as US bond yields retreat in reaction to growing fears about the coronavirus outbreak economic impact. Earlier, the pair plunged amid weak German data.


GBP/USD bounces above 1.30 as markets shrug off wage figures

GBP/USD is trading above 1.30 as investors ignore weak UK wage figures and Brexit concerns once again. Coronavirus headlines are eyed.


Forex Today: Coronavirus takes a bite from the apple, Gold gains, Bitcoin bounces

The coronavirus outbreak's economic impact is growing as Apple, the iPhone maker has issued a warning that it is unable to meet its guidance due to production and issues and closed stores in China. The tech giant's announcement has been weighing on the market mood, pushing gold and the yen higher. 

Read more

Gold firmer, near $1,600/oz on coronavirus fears

Renewed fears around the Chinese coronavirus (COVID-19) have been supporting the demand for the safe haven metal in past hours, taking the ounce troy to levels just shy of the key $1,600 mark.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info