- Dollar gains momentum in the market and clears losses on all fronts.
- Yen also cuts losses as stocks stop rising.
He USD / JPY found support in the European session at the 103.40 zone from where it bounced and climbed to 103.70, marking a new high for the day. It is trading at 103.55 / 60, just shy of Thursday’s close. It moves without a clear direction, in a low volume session and without relevant economic data.
The USD / JPY rally was driven by the recovery of the dollar in the market. The US Dollar Index (DXY) went from below 90.00 to rise to 90.30, the maximum since Wednesday before moderating the advance.
Treasury yields are rising Monday supporting the dollar’s advance. The 10-year rate is over 0.96%. In turn, the stock markets, although they have not set new highs, are consolidating gains. Wall Street futures point to a positive open, with gains in the main indices around 0.70%.
Technical overview
The Dominant trend in USD / JPY continues to trade in a dominant downtrend from a general perspective. In the short term the direction is not clear. A confirmation above 103.75 / 80 would point to more gains and a test at 104.00. The next resistance is at 104.25.
Should it drop below 103.40, USD / JPY could go to test 103.25, where last week’s lows are. If a break below is confirmed, the yen would gain momentum, exposing the 103.00 area.
Technical levels
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