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USD/JPY holds like a champ circa 107.30

FXStreet (Bali) - USD/JPY continues to trade at its highest in 6 years, with selling interest still very limited, keeping the rate buoyant around the 107.30 resistance area, with Tokyo markets closed due to public holidays.

One factor expected to provide further support to the USD/JPY long trade is the recent upside breakout in 1--year US bond yields. As Jim Langlands, Founder at FXCharts, notes, "the 10 year US yields headed sharply last week, closing at 2.61% and taking out near term descending channel resistance, suggesting that they may have recently bottomed out at 2.305%, which has assisted in underpinning the recent run up in US$Jpy."

Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes that "The hourly chart presents a mild positive tone, with moving averages still heading higher below current price, 100 SMA now around 106.80 offering short term support, and indicators in positive territory."

"In the 4 hours chart indicators also show no particular bias but hold above their midlines, reflecting current consolidative stage. Some downward correction could not be discarded, yet buyers will likely surge on approaches to mentioned dynamic support", Valeria adds.

EUR/USD: Technicals support further short squeeze - FXStreet

Technical readings support some further upward potential in EUR/USD, notes Valeria Bednarik, Chief Analyst at FXStreet.
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