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USD/JPY topped at 105.84 as the yield on the benchmark 10-year note hit 1.394%, now trading in the 105.60 price zone. Although the pair retains part of its intraday gains, its bullish potential is limited, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“Demand for the American currency remains well limited across the FX board, despite the sour tone of equities. Investors’ attention is on a US stimulus package, amid expectations it will be passed this week.”

“In the 4-hour chart, the USD/JPY pair briefly traded above a mildly bearish 20 SMA but remains below it. It’s also developing above bullish 100 and 200 SMAs, while technical indicators retreat from their midlines, suggesting another leg lower ahead.”

“Support levels: 105.30 104.95 Resistance levels: 105.95 106.30”

 

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