- USD/JPY has recovered losses, possibly tracking the uptick in the Asian stocks.
- The recovery, however, is not backed by a rise in Treasury yields. As of writing, the 10-year yield is sidelined just below 2.42 percent.
- A break above 110.65 would confirm a channel breakout on the hourly chart.
The American dollar has firmed up in the last hour or so, with USD/JPY recovering 20 pips from session lows to trade largely unchanged on the day at 110.60.
While the bounce is in line with the bullish view put forward by the multiple long-tailed hourly candles earlier today, its sustainability is under question, as the 10-year treasury yield is flat lined just below 2.42 percent.
That said, an uptick in Asian stocks, especially the Shanghai composite, may have weakened the bid tone around the anti-risk JPY. The Chinese benchmark index is reporting a 0.5 percent gain at press time and the futures on the S&P 500 are up 0.12 percent.
Looking forward, a stronger rally toward the 200-hour moving average, currently at 110.89, could be seen, if the pair confirms a channel breakout on the hourly chart with a move above 110.65.
Technical Levels
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