- USA: Durable goods orders rise in May above expectations.
- Dollar with mixed results on Monday, between yields and sentiment.
- USD/JPY with a bullish bias, limited by the 135.50 area.
The USD/JPY is rising on the unes although it has trimmed gains in the last hour on deteriorating market sentiment. The pair was unable to assert itself above 135.50 and fell back. It is approaching 135.00 after the opening of Wall Street.
The yen trimmed losses in the market in the last hour. It was being affected by a rise in stock markets (which is losing pace) and by an advance in US and European bond yields. The US 10-year bond yields 3.16%, after topping 3.20% hours ago.
As far as data is concerned, a higher than expected rise in orders for durable goods in the US for May was known, which had no impact on the market.
The technical picture looks skewed to the upside, with USD/JPY making higher highs and lows in recent days, albeit at a moderate pace. A confirmation above 135.50 would support the dollar, to go towards 136.00. While in the opposite direction, a consolidation below 134.50 would leave the pair poised to extend the correction from last week’s decade high at 136.70, with the next strong support at 133.50.
Technical levels
Source: Fx Street
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