USD / JPY Current Price: 106.44
- Yields on US Treasuries accelerated their rally, providing support to the USD / JPY.
- US housing data and consumer confidence ahead.
- USD / JPY is bullish in the short term, support at 106.30.
A good market mood is lifting USD / JPY, which is now trading at daily highs in the price area of 106.40. Support comes from yields on US Treasuries, ahead of the US opening, reflecting market optimism. Stocks, on the other hand, are not doing very well after Monday’s outstanding performance. European indices are barely higher, while US indices hold yesterday’s gains. In general, the greenback is weaker against most of the major rivals, with the exception of those considered safe havens.
The macroeconomic calendar had nothing to offer during trading hours in Asia, although the European figures released today were generally encouraging. The US session will bring data related to housing, including new home sales in July, and CB consumer confidence, which is forecast at 93 from 92.6.
Short-term technical outlook USD / JPY
USD / JPY is now above the 61.8% retracement of its last daily decline, measured between 107.04 and 105.09, at 106.29. In the 4-hour chart, the pair rallied above all of its moving averages, which lack clear directional strength anyway. Technical indicators, meanwhile, have advanced to positive levels, partially losing their bullish strength but still heading north. Further gains are expected on a breakout above 106.70 immediate resistance to new monthly highs above 107.05.
Support levels: 106.30 105.90 105.50
Resistance levels: 106.70 107.05 107.40
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