- USD/JPY has picked up a bid, possibly tracking the rise in the US yields and the S&P 500 future.
- A break above 106.86 is needed to confirm an inverse head-and-shoulders breakout.
USD/JPY is better bid at press time, possibly due to an uptick in the futures on the S&P 500 index and Treasury yields.
The pair is currently trading at 106.47, up more than 20 pips from the low of 106.22 seen in the early Asian trading hours.
The S&P 500 futures are currently reporting 0.24% gains. The index fell 0.79 percent on Tuesday, snapping a three-day winning streak.
Meanwhile, the US 10-year Treasury yield is trading at 1.574%, representing a two basis point gain on the day.
Looking forward, the pair may extend gains if the S&P 500 futures remain in the green, weakening demand for the anti-risk JPY.
The technical outlook, however, will turn bullish if the pair rises above 106.86, confirming an inverse head-and-shoulders breakout on the 4-hour chart.
The breakout, if confirmed, would open the doors for 108.67. The daily chart is reporting a bullish divergence of the relative strength index, so the pair could confirm breakout with a move above 106.86.
Trend: Bullish above 106.86
- R3 107.09
- R2 106.89
- R1 106.56
- PP 106.36
- S1 106.03
- S2 105.83
- S3 105.5
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.