- A combination of support factors pushed USD / JPY to a new monthly high on Thursday.
- The risky mood continued to undermine the safe-haven JPY and provided a good boost.
- High US bond yields and upbeat US macro data benefited the dollar and kept it supported.
The pair USD/JPY it maintained its offered tone during the early days of the American session and was last seen near the monthly high, around the 115.15-20 region.
Optimism about signs that the Omicron variant could be less severe than feared and unlikely to derail the economic recovery continued to support underlying bullish sentiment. This was evident by an extension of the recent rally in global equity markets, which undermined the Japanese yen as a safe haven and pushed the USD / JPY higher.
This, coupled with a modest strength in the US dollar, contributed to the ongoing upward trajectory to the highest level since November 26. The dollar got some support from high US Treasury yields and better-than-expected US initial jobless claims data, though it lacked optimism and conviction amid low volumes. year-end negotiation.
However, the USD / JPY pair has now recovered more than 250 pips from the monthly low, around the 112.60 zone touched on December 2, and appears poised to appreciate further. A sustained strength above the key psychological level 115.00, which coincided with an ascending channel resistance, adds credibility to the constructive outlook.
Therefore, a subsequent move back to challenge the multi-year high around 115.50 remains a clear possibility. Market participants are now waiting for the Chicago PMI release for further momentum. This, coupled with the broader market risk sentiment, would produce some trading opportunities around the USD / JPY pair.
Technical levels
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