- USD / JPY rises slightly amid risk sentiment in the market.
- USD / JPY Technical Outlook: Leaning higher as the pair’s bulls have regained the 114.00m level now targeting 115.00.
The USD / JPY rises slightly during the American session on Wednesday, trading at 114.13 at the time of writing. US equities continue to trend higher, reflecting the sentiment of market participants in detriment to safe haven assets such as the Japanese yen.
The US dollar DXY index, which measures the value of the green USD against a basket of major currencies, plunges 0.35% to 96.14, clinging to the 96.00 level. Meanwhile, the 10-year US Treasury yield falls three basis points to 1,458%.
USD/JPY Technical Perspective
Earlier in the day, the USD / JPY pair has slid slightly towards the daily low at the pivot at 113.95. As market sentiment has improved, the US dollar has strengthened against the yen, climbing towards the R1 daily pivot at 114.34 before settling at current levels.
The USD / JPY daily chart shows that the pair has an upward bias. The daily moving averages remain below the spot price, with the 50 SMA at 113.86, the average closest to the current price. Furthermore, a four-month-old trend line, respected twice, intersects the aforementioned SMA, leaving the 113.80-90 zone as a problematic demand zone to overcome for the JPY bulls.
Looking up, the first resistance would be the November 1 high at 114.44. A breakout of this level could send USD / JPY towards the October high at 114.70, followed by the level of 115.00.
On the other hand, the round level of 114.00 it would be the first line of defense for the USD / JPY bulls. Once the aforementioned level is exceeded, the next stop would be the 50 SMA at 113.86, followed immediately by the December 17 low at 113.14.
USD / JPY technical levels
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