USD/JPY’s pullback from 111.65, contained above 111.25


  • The US dollar remains bid, supported above 111.25.
  • US/Japan bond yields' differential is boosting greenbacks rally.
  • Analysts at Credit Suisse see the USD likely to reach levels past 117.00.

The US dollar failed on its first attempt to break the year-to-date high at 111.65 earlier on Tuesday and the pair gave away some ground to find support above 111.25.

The USD remains buoyed on higher US yields

In spite of the recent reversal, the near-term USD/JPY trend remains positive, following a five-day winning streak. The US dollar has appreciated beyond 2% over the last five days, buoyed by a US bond yield rally amid the Federal Reserve’s signals towards the end of the Quantitative Easing era.

The bond yields' differential between the US and Japan, with the Bank of Japan applying a yield curve control policy to keep the 10-year note at 0%, has offset the impact of a somewhat sourer sentiment caused by concerns about a debt crisis at China’s Evergrande Group, which should have offered some support to the safe-haven Japanese yen.

USD/JPY: likely to reach beyond 117.00 – Credit Suisse

Credit Suisse’s FX Analysis Team sees the dollar marching higher, boosted by a solid appreciation in US yields: “Whilst the 112.23/40 resistance should be respected, an eventual break would see an important and large base complete to signal a more sustained change of trend higher. We would expect this to provide the platform for a move to the 2018 highs at 114.25/55 initially, with scope for 117.20 in due course, the long-term downtrend from April 1990.”

Technical levels to watch

USD/JPY

Overview
Today last price 111.48
Today Daily Change 0.47
Today Daily Change % 0.42
Today daily open 111.01
 
Trends
Daily SMA20 109.94
Daily SMA50 109.91
Daily SMA100 109.92
Daily SMA200 108.3
 
Levels
Previous Daily High 111.07
Previous Daily Low 110.54
Previous Weekly High 110.79
Previous Weekly Low 109.12
Previous Monthly High 110.8
Previous Monthly Low 108.72
Daily Fibonacci 38.2% 110.86
Daily Fibonacci 61.8% 110.74
Daily Pivot Point S1 110.67
Daily Pivot Point S2 110.34
Daily Pivot Point S3 110.14
Daily Pivot Point R1 111.2
Daily Pivot Point R2 111.4
Daily Pivot Point R3 111.73

 

 

 

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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD stays afloat above 1.1600 as inflation data meet expectations

EUR/USD came under modest bearish pressure in the early European session and continues to have a difficult time regaining its traction. After the data from the euro area revealed that annual CPI stayed unchanged at 3.4% in September, the pair stays relatively calm above 1.1600.

EUR/USD News

GBP/USD drops below 1.3800 as UK CPIs disappoint

GBP/USD eases below 1.3800, as an unexpected decline in the UK inflation douses the BOE rate hike expectations. Covid resurgence in the UK also undermines the pound. The pair could find support from a broadly subdued US dollar and fresh Brexit optimism. 

GBP/USD News

Gold: $1791 appears a tough nut to crack for XAU/USD bulls

Gold price is holding the higher ground, extending the previous advance amid a pullback in the US 10-year Treasury yields from five-month highs of 1.672%.

Gold News

Crypto markets prepare for final pullback before next leg up

Bitcoin price is due for a retracement as MRI flashes a sell signal on the daily chart. Ethereum price continues to consolidate under the $3,938 resistance level. Ripple price slides below the $1.09 support level as the crypto markets prepare for a minor correction.

Read more

Tesla: Why it is time to sell TSLA stock

Tesla breaks higher again on Monday as we had called. TSLA to release earnings after the close on Wednesday. Is it time to sell Tesla stock now before earnings?

Read more

Forex MAJORS

Cryptocurrencies

Signatures