USD / JPY Current Price: 105.61
- Yields on US Treasuries climbed pre-opening, posting new highs in one year.
- The scarcity of the US macroeconomic calendar distracts attention from news related to US stimulus measures.
- USD / JPY may fall further and should move below 105.30.
USD / JPY rose around the London open as the greenback received some attention following new one-year highs in US Treasury yields. The pair peaked at 105.84 as the yield on the benchmark 10-year note hit 1.394%, now trading in the 105.60 price zone. Demand for the US currency, however, remains well limited across the currency board, despite the sour tone of stocks. Investor attention is on a US stimulus package, which is expected to pass this week.
Japan released the business services price index in January, which stood at -0.5% year-on-year, better than expected but worse than the previous -0.4%. The United States will today release the Chicago Fed’s National Activity Index in February and the Dallas Fed’s Manufacturing Index.
Short-term technical outlook USD / JPY
USD / JPY is retaining some of its intraday gains, although the near-term picture is bearish. In the 4-hour chart, the pair traded briefly above a slightly bearish 20 SMA but remains below. It is also developing above the 100 and 200 bullish SMAs as technical indicators retreat from their midlines, suggesting another lower leg to come.
Support Levels: 105.30 104.95 104.50
Resistance Levels: 105.95 106.30 106.75
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