February 3, 2023

Forex Solution

Learn To Trade Forex

USD/JPY wipes out Monday drop in push back above 110.00 on the day

1 min read

Higher Treasury yields is helping to see yen crosses a little higher today

USD/JPY D1 21-07

After Monday’s sharp drop, USD/JPY saw a solid rebound yesterday and that is continuing today as Treasury yields are also bouncing back.

10-year yields are up by nearly 4 bps to 1.245% and that is helping to provide the market with some comfort as risk sentiment stabilises after the jitters earlier in the week.

USD/JPY is also managing to keep a daily close above its 100-day moving average (red line) and the defense of the key level also bolsters the bounce we are seeing – at least from a technical perspective; not to mention the 61.8 retracement level holding.

The push back above 110.00 is encouraging as buyers are also managing to get past the key hourly moving averages @ 109.83 and 110.03 (100 and 200-hour moving averages respectively), keeping the near-term bias more bullish.

Tracing the drop since the start of the month, the 50.0 retracement level of that is @ 110.36 and a push above that will provide more conviction for any further extension of the upside momentum in the past two days.

Just above that will be resistance from the 13-14 July highs @ 110.65-70.

Invest in yourself. See our forex education hub.

Source link

Copyright © All rights reserved. | Newsphere by AF themes.