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  • USD/JPY has backed off from session highs and is currently trading at 200-day MA at 111.32.
  • Both uptick in stocks and the rise in the 10-year yield favor upside in the US dollar.  

USD/JPY pair is currently trading just above the 200-day moving average (MA) of 111.32, having hit a high of 111.45 earlier today.  

The currency pair is struggling to build momentum above the long-term moving average despite the risk reset in the financial markets.  

On Monday, the S&P 500 posted a biggest single-day gain in six weeks after the official data showed the US retail sales stabilized in February. Meanwhile, Asian stocks are currently trading in the red and could be headed for their biggest increase since January.  

Further, the 10-year treasury yield is hovering at 2.66 percent – up two basis points on the day –  having clocked a low of 2.62 percent yesterday, a level last seen on Jan. 31.  

Despite the dollar-supportive action in the related markets, USD/JPY is struggling to find a firm footing above the 200-day MA.  That, however, may happen if the US consumer price index for February, due for release at 12:30 GMT, beats expectations.  

Technical Levels