- USD/JPY: dollar remains favoured, albeit advance shallower.
- USD/JPY: Central Bank divergence and waning geopolitical threats weaken the yen.
USD/JPY bulls have been capped in Tokyo, unable to get and hold above the 109.80 resistance. Currently, USD/JPY is trading at 109.69, up 0.03% on the day, having posted a daily high at 109.81 and low at 109.64.
Overnight, USD/JPY was better bid where, firstly, EUR/JPY bulls carried the pair higher after the ECB noise supported the euro and that aided the continuation of the USD/JPY from 109.42 lows.
US yields take the dollar higher, USD/JPY bulls eyeing the 100 handle
The DXY ended the NY session at 92.69 within a range of between 92.2430-92.6900. The US 10yr treasury yield rose from 2.96% to 3.00%, while 2yr yields rose from 2.53% to 2.55% making for a fresh10-year high. The Fed fund futures yields continued to predict a rate hike in June as effectively certain, and an additional hike by year-end
With US yields bouncing to the 3% mark, the general dollar rebound sent the pair to a high of 109.69. Observers will now keep an eye on trade war headlines, (currently softened by Trump’s about-face ZTE negotiation with China) and Japanese GDP/US retail sales tomorrow.
USD/JPY levels
USDJPY: Is firmer today
Valeria Bednarik, chief analyst at FXStreet explained that, technically, the pair retains a short-term neutral stance, holding above a bullish 100 SMA in the 4 hours chartand with technical indicators gaining upward traction but around their midlines:
“The daily ascendant trend line coming from early April is now acting as support at 109.00, although the key level continues to be the 108.70/80 price zone, with a break below this last opening doors for a steeper decline,” Valeria added.
Share
