- The pair extends the rebound beyond the key 110.00 handle.
- US 10-year yields in new multi-year peaks above 3.05%.
- US Retail Sales missed estimates at 0.3% MoM.
The greenback is prolonging the upside vs. its Japanese counterpart today, lifting at the same time USD/JPY to fresh multi-month tops beyond 110.00 the figure.
USD/JPY looks to yields for direction
The pair is challenging fresh 4-month tops following the bullish move in yields of the key US 10-year note to the area beyond 3.05%, levels last traded in November 2011.
Lending extra legs to the buck, the Empire State manufacturing gauge surprised to the upside at 20.10 for the current month. On the not so bright side, US headline Retail Sales expanded less than forecasted 0.3% MoM, while Core Sales also expanded below expectations at a monthly 0.3%.
Still in the US, Dallas Fed R.Kaplan (non voter, hawkish) said earlier that the Fed should move to neutral rates, placing them in the 2.5%-3% range.
Later in the US docket, TIC Flows are due, seconded by Business Inventories and the NAHB index.
USD/JPY levels to consider
As of writing the pair is gaining 0.52% at 110.23 and a break above 110.30 (high May 15) would open the door to 110.48 (high Feb.2) and finally 111.50 (high Jan.18). On the downside, immediate contention is located at 108.96 (21-day sma) followed by 108.64 (low May 4) and then 108.47 (100-day sma).
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.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0550 ahead of US data
EUR/USD trades in the red below 1.0550 as investors await macroeconomic data releases from the US. The pair faces headwinds from risk-off flows due to rising geopolitical conflict between Russia and Ukraine and worries over the potential US tariffs on the EU.
GBP/USD pressured toward 1.2600, eyes on US data and Fedspeak
GBP/USD stays on the back foot and trades below 1.2650 on Thursday. The pair's underperformance could be attributed to a risk-aversion market environment. Traders stay cautious amid rife geopolitical tensions ahead of mid-tier US data and Fedspeak.
Gold extends gains beyond $2,660 amid rising geopolitical risks
Gold extends its bullish momentum further above $2,660 on Thursday. XAU/USD rises for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. US data and Fedspeak are next in focus.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.