USD/JPY Current Price: 108.90
- Japanese services output improved from record lows, but still dip into contraction territory.
- US Treasury yields edged firmly higher, the yield on the 10-year note jumped to 0.77%.
- USD/JPY retains its bullish bias, immediate resistance at 109.10.
The USD/JPY pair has moved closer to the 109.00 threshold, ending the day with gains near the 108.97 high achieved this Wednesday. Global equities posting substantial gains were behind the pair’s modest advance, as demand for safe-haven assets remained subdued. US Treasury yields, on the other hand, edged firmly higher as economic reopenings boosted sentiment. The yield on the benchmark 10-year Treasury note jumped to 0.77%, its highest level in over two weeks.
During Asian trading hours, Japan published the Jibun Bank Services PMI, which bounced in May to 26.5 from 21.5, showing the extent of Japan’s economic contraction. This Thursday, the country’s macroeconomic calendar will remain scarce, as it only will publish foreign investment in Japanese papers.
USD/JPY short-term technical outlook
The USD/JPY pair hovers around 108.90, retaining its bullish bias. The daily low was set at 108.69, with increased chances of a bearish corrective decline if the pair moves below it. In the 4-hour chart, the pair continues to develop above all of its moving averages, with the 20 SMA heading north almost vertically above the larger ones. Technical indicators have lost their strength upwards, but remain near their daily highs in overbought levels, indicating limited selling interest.
Support levels: 108.65 108.25 107.90
Resistance levels: 109.10 109.50 109.85
View Live Chart for the USD/JPY
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