- USD / JPY gains nearly 150 pips from Wednesday’s low in a strong reversal.
- US yields rise further supporting the US dollar.
He USD/JPY It resumed higher after a pullback to 103.50 and reached 103.95, the highest level in four weeks. It is moving slightly below 104.00 with bullish momentum backed by a stronger USD.
The dollar is among the best performers on Thursday. The DXY is trading at 89.80 / 85, with its eyes set on 90.00 up 0.35% for the day. Ongoing movements in the bond market are supporting the dollar. The US 10-year yield rose to 1,085%, the highest since March. On Wall Street, the major indices are at record highs. The Dow Jones is up 1.07% and the Nasdaq is up 2.25%.
The long-term downtrend of USD / JPY is likely to be tested
USD / JPY rose above the 20-day SMA (103.50) on Thursday and is about to test the 104.00 zone. A previous consolidation could add more strength to the recovery. On Wednesday, the dollar bottomed at 102.59, the lowest level since March.
If the upside continues, USD / JPY will face critical resistance at 104.50 / 60, the convergence of the 20-week moving average, and a seven-month downtrend line. If it breaks above, the negative bias could be invalidated.
Technical levels
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