USD/JPY: the cloud top is anchoring the bulls, 110 out of range?
- USD/JPY: bulls losing their grip through the cloud top.
- USD/JPY: 110 on the cards or what will it take?
USD/JPY is offered in Tokyo, where the bulls have not got the stamina to maintain the bid above the cloud top. Currently, USD/JPY is trading at 109.33, down -0.08% on the day, having posted a daily high at 109.48 and low at 109.24.
Wall Street stocks rebound led by Dow Jones and Boeing earnings
USD/JPY as testing the cloud top overnight piercing through it at 109.21 to reach a high of 109.47. However, this is a psychological level and rallies such as we have seen over the last few sessions since USD/JPY broke the 108 handle, are prone to profit taking and without the backdrop of a catalyst, or two, the argument for the 110 handle has little substance.
USD/JPY: lets try and figure this one out shall we? 110 here we come, or not so fast?
What's coming up?
Traders are getting set for the ECB and US durable goods tonight before US GDP at the end of the week. However, the data alone may not be enough to support the dollar through, say 110.50, and US yields will need to remain elevated and moving higher gradually on the 3% handle in the 10's. 109.20 needs to hold.
USD/JPY levels
USDJPY: The daily and weekly momentum indicators look positive for further gains
Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart shows that technical indicators have entered a consolidative phase at overbought levels, with the Momentum barely easing but still above yesterday's low, while the price continues distancing from bullish 100 and 200 SMA, all of which favors another leg higher for the upcoming sessions.