- USD/JPY has picked up a bid, possibly tracking the rise in the US yields and the S&P 500 future.
- A break above 106.86 is needed to confirm an inverse head-and-shoulders breakout.
USD/JPY is better bid at press time, possibly due to an uptick in the futures on the S&P 500 index and Treasury yields.
The pair is currently trading at 106.47, up more than 20 pips from the low of 106.22 seen in the early Asian trading hours.
The S&P 500 futures are currently reporting 0.24% gains. The index fell 0.79 percent on Tuesday, snapping a three-day winning streak.
Meanwhile, the US 10-year Treasury yield is trading at 1.574%, representing a two basis point gain on the day.
Looking forward, the pair may extend gains if the S&P 500 futures remain in the green, weakening demand for the anti-risk JPY.
The technical outlook, however, will turn bullish if the pair rises above 106.86, confirming an inverse head-and-shoulders breakout on the 4-hour chart.
The breakout, if confirmed, would open the doors for 108.67. The daily chart is reporting a bullish divergence of the relative strength index, so the pair could confirm breakout with a move above 106.86.
4-hour chart
-637019517231875483.png)
Trend: Bullish above 106.86
Pivot points
Share
