fxs_header_sponsor_anchor

News

USD/JPY hits fresh session tops, inching closer to 110.00 mark

   •  A goodish pickup in the US bond yields remains supportive of the strong up-move.
   •  JPY further weighed down by fading dampen safe-haven demand on positive equities.
   •  A modest USD retracement does little to provide any additional boost.

The USD/JPY pair continued scaling higher on Wednesday and touched a fresh session high level of 109.81 in the last hour. 

The pair built on its Asian session up-move from the 109.00 handle and was further supported by a goodish pickup in the European equity markets, which was seen weighing on the Japanese Yen's safe-haven appeal.

This coupled with a goodish pickup in the US Treasury bond yields, amid rising speculations about steeper Fed monetary policy tightening cycle, remained supportive of the pair's strong up-move through the early European session.

Meanwhile, the US Dollar trimmed some of its early strong gains to fresh YTD tops and did little to attract follow-through buying interest and provide any additional boost, at least for the time being.

It would now be interesting to see if the pair is able to build on the momentum and head towards reclaiming the key 110.00 psychological mark or bulls opt to lighten their bullish bets in light of a highly overbought USD. 

Traders now look forward to the US economic docket, highlighting the release of Producer Price index (PPI) for April in order to grab some short-term opportunities later during the early NA session.

Technical levels to watch

The 110.00 handle is likely to act as an immediate resistance and is followed by the very important 200-day SMA barrier near the 110.15-20 region. On the flip side, 109.45 level now seems to protect the immediate downside, which if broken might drag the pair back towards retesting the 109.00 round figure mark.
 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.