- The US dollar maintains gains across the board.
- USD / JPY gains momentum amid improved risk sentiment and rising US yields.
The USD/JPY it continued to climb and reached the 109.95 level, hitting a new daily high. It had risen nearly a hundred pips from Monday’s low, driven by a rally in stock prices and higher yields in the United States.
After a sharp drop on Monday, the Dow Jones was up 1.83% and the Nasdaq gained 1.55%. The 10-year yield stands at 1.21% after hitting the ground Tuesday at 1.12%. Higher yields contribute to the USD / JPY rally. The Japanese yen is among the worst performers during the US session.
The chart still shows USD / JPY with a bearish bias, but the rebound eased the pressure. A pullback below 109.40 would expose the recent low at 109.06 (July 19). Next, the next support is at 108.50.
The recovery could face resistance at 110.00 and then 110.35. The 20-day moving average stands at 110.45. A daily close above 110.50 would negate the short-term negative bias.