USD/JPY Price Analysis: Gaining Momentum On Rising US Treasury Bond Yields

Yen, Money, Wealth, Japanese Yen

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  • The USD/JPY pair managed to reach fresh five-week highs at 134.57, with bulls eyeing the 135.00 level.
  • Oscillators at bullish areas appear to favor further upside in the USD/JPY pair.
  • Downside risks lie below the 134.00 level, which could drive the USD/JPY pair towards the 133.00 level.

The USD/JPY currency pair moved higher recently as US Treasury bond yields resumed their uptrend following last week’s hawkish commentary by Federal Reserve officials. Fed Board Governor Christopher Waller’s comments that more tightening is needed triggered the latest jump in the 10-year US T-bond yield. The USD/JPY pair has since rallied, and has been trading at around 134.47, up 0.52%.


USD/JPY Price Action

The USD/JPY extended its gains past last week’s high of 134.04, and is aiming to challenge a break above the Jan. 6 high at 134.77. On its way up, the pair climbed above several solid resistance areas, like the 200-day Exponential Moving Average (EMA) at 133.70, followed by the 100-day EMA at 134.00. Once the pair cleared those levels, the 135.00 level has remained a challenge.

The Relative Strength Index (RSI) appears to cement the upward case in bullish territory, while the Rate of Change (RoC) seems to indicate that buying pressure is increasing.

If the USD/JPY pair rallies above the 135.00 level, the next resistance would be seen at 136.00, followed by the psychological 137.00 level, before testing the year-to-date high at 137.91.

Conversely, if the USD/JPY pair retraces, the first support would be the 100-day EMA at 134.00. A breach of the latter would immediately expose the 200-day EMA at 133.70, followed by the 50-day EMA at 133.14, before sliding to 133.00.


USD/JPY Daily Chart

USD/JPHY Daily Chart


USD/JPY Technical Levels


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Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...

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