The USD/JPY Continues to Rise as US 10-Year Yields Climb
- Current Situation: The USD/JPY is trading within a range of 148.00-149.50, with momentum favoring buyers.
- Key Levels: A break above 149.50 could lead to a challenge of the 150.00 level and resistance at the 200/100-DMA confluence at 151.20/21. On the other hand, a drop below 149.00 may result in a pullback towards the October 8 swing low of 147.35.
During the North American session, the USD/JPY saw an increase as US Treasury yields, especially the 10-year T-note, rose by close to four basis points to 4.104%. This positive correlation between the US 10-year yield and the pair pushed the exchange rate to 149.13, up by 0.37%.
Technical Outlook for the USD/JPY Price Forecast
The USD/JPY is currently neutrally biased but trading in a higher range within the 148.00-149.50 zone as market participants analyze the next moves of the Fed and the Bank of Japan.
From a momentum perspective, buyers are still in control, although the Relative Strength Index (RSI) has not reached a new peak to drive USD/JPY prices further up.
If the USD/JPY manages to surpass the 149.50 level, it will open up the path to the 150.00 mark. Once breached, the next resistance to watch out for would be the 200 and 100-day moving averages (DMAs) confluence at 151.20/21.
However, if the pair drops below 149.00, traders should anticipate a retracement towards the October 8 swing low of 147.35.
USD/JPY Price Action – Daily Chart
Japanese Yen PRICE Today
The table below illustrates the percentage change of the Japanese Yen (JPY) against major currencies today. Notably, the Japanese Yen exhibited strength against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.07% | 0.39% | 0.17% | -0.20% | -0.28% | 0.12% |
The heat map visually represents the percentage changes of major currencies against each other. By selecting the base currency from the left column and the quote currency from the top row, users can determine the percentage change between the two currencies.
Analysis:
The USD/JPY pair’s movement is closely tied to US Treasury yields, particularly the 10-year T-note. As the yield rises, the USD/JPY tends to climb as well, showing a positive correlation between the two financial instruments.
For traders and investors, understanding this relationship can help in making informed decisions when trading the USD/JPY pair. Keeping an eye on key levels such as 149.50 and 149.00 can provide valuable insights into potential price movements and entry/exit points.
Overall, the USD/JPY’s performance reflects broader market sentiments and economic conditions, making it a crucial pair to watch for those involved in the forex market. By analyzing technical indicators like moving averages and momentum, traders can better navigate the fluctuations in the USD/JPY exchange rate and capitalize on profitable opportunities.